Gold hits over 3-month high ahead of US inflation data, Fed chair speech

Gold rose to its strongest level in over three months on Monday, according to Business Recorder, as a softer US dollar lent a helping hand to the metal. Spot gold was 0.5% higher at $4,627.42 an ounce as of 0155 GMT, having reached its peak since May 15 earlier in the session. The precious metal had already added more than 5% over the previous week.

Attention has turned to the July Personal Consumption Expenditures price index and a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium later this week. Traders will watch those releases for clues on the US interest rate outlook. A wavering dollar, meanwhile, hovered near multi-month lows after the US Treasury said it would buy back more long-dated bonds.

The US warned Iran of a sweeping financial campaign as it readied sanctions aimed at Iran's trade partners. Oil prices fell more than $1 a barrel, with traders locking in gains before the expected announcement. Silver and the other precious metals also softened, with spot silver down 0.3% at $68.76 an ounce, platinum off 0.5% at $1,868.03, and palladium lower by 0.3% at $1,345.87.