Gold rises to highest since mid-May as buying momentum builds

Spot gold climbed 0.4 per cent to $4,668.19 an ounce by 0146 GMT on Tuesday, reaching its highest level since May 14, according to Business Recorder. US gold futures added 0.6 per cent to $4,724.50, extending a rally that has taken prices to a more than three-month peak. The advance came as traders weighed recent moves by the US Treasury and a series of upcoming Federal Reserve events.

IG market analyst Tony Sycamore linked the newest push higher to the return of the debasement trade last week. He expects buyers to support any dips as prices work toward the next resistance levels near $4,900/$5,000.

Last week the US Treasury said it would double buybacks aimed at supporting longer-dated government debt, stoking worries about currency debasement. Investors are now focused on a speech by Fed Chair Kevin Warsh at the Jackson Hole conference and the Personal Consumption Expenditures report due on Wednesday. Among other metals, silver advanced to $69.16 an ounce, with platinum at $1,883.93 and palladium at $1,359.00 after modest gains.