Gold prices climbed to their highest level in more than three months on Monday, supported by a weaker US dollar as investors turned their attention to upcoming US inflation data and a speech by Federal Reserve Chair Kevin Warsh.
Spot gold rose 0.9% to US$4,643.63 an ounce as at 6.44am GMT, its highest level since mid-May, after gaining more than 5% last week. US gold futures also edged 0.4% higher to US$4,699.10.
The dollar remained near multi-month lows amid market concerns over the US Treasury’s plan to increase long-term bond buybacks. A weaker dollar makes gold, which is priced in the greenback, more affordable for holders of other currencies.
Tim Waterer, chief market analyst at KCM Trade, said gold had started the week strongly as investors focused on the softer dollar and what elevated bond yields could signal about economic strains and policy uncertainty.
Market attention is now turning to the July Personal Consumption Expenditures price index data and Warsh’s speech at the Jackson Hole symposium later this week, with investors looking for clues on the US interest rate outlook.
RHB Investment Bank Bhd (RHB Research) maintained its bullish trading bias on COMEX Gold, advising traders to keep their long position initiated at US$4,273.30 on Aug 5.
RHB Research said COMEX Gold surged US$108 on Friday to close at US$4,645.10 after reaching an intraday high of US$4,654.80, with the strong bullish momentum potentially setting the stage for a breakout above the US$4,650 resistance.
The research house identified immediate support at US$4,300, followed by US$4,100, while resistance is seen at US$4,650 and then US$4,900. It set a stop-loss at US$4,300.
Elsewhere, spot silver edged 0.1% higher to US$69.03 an ounce, while platinum gained 0.5% to US$1,887.28 and palladium rose 0.3% to US$1,353.34.
