Gold holds firm at $4,636 as dollar stays weak

Gold climbed to its loftiest point in more than three months on Tuesday, according to Mettis Global, as a softer greenback and a Treasury repurchase scheme helped hold yields in check. Spot gold was last 0.72% higher at $4,636.08 an ounce, having touched $4,700 earlier before giving back some gains. Silver followed the rally, rising 0.4% to $69.19 an ounce.

A weaker dollar makes gold cheaper for buyers using other currencies, while lower Treasury yields reduce the cost of holding bullion, which pays no interest. Citing CNBC, Mettis Global said the dollar index has fallen 0.8% this month. Treasury yields stayed high for much of August, yet the bond buyback plan pushed them down by 3 basis points over the same period.

Attention now turns to Fed Chair Warsh, who is due to speak at the Jackson Hole Symposium later this week. Investors are looking to that address for cues on the interest-rate path.