29.08.202513:55:29UTC+00Gold Climbs, Up 4% in August

Gold prices rose to $3,425 per ounce on Friday, drawing near to the record high of $3,500 established in April, and positioned for a second consecutive weekly increase. This uptick occurred as investors gravitated towards gold amid uncertainty surrounding US monetary policy. There are growing concerns that political influence could prompt the Federal Reserve to accelerate interest rate cuts, a factor that has further buoyed gold prices. Markets are broadly anticipating a 25 basis points reduction in rates come September. Fed Governor Christopher Waller has expressed support for initiating rate cuts next month, stating his expectation for further reductions to steer policy closer to a neutral stance, aligning with views shared by his peers.

In parallel, US consumer spending recorded its most significant increase in four months during July, signaling robust demand despite persistent inflation pressures. The core Personal Consumption Expenditures (PCE) price index, which excludes the volatile food and energy sectors and is preferred by the Federal Reserve, climbed by 0.3% from June. On an annual basis, this measure rose to 2.9%, marking its highest level since February. Gold has appreciated approximately 4% this August, making it the strongest monthly performance since April.