(RTTNews) – Gold held steady on Friday but was on course for its strongest monthly advance since 1999 in the wake of the Treasury’s plan to keep bond yields down.
Spot gold was little changed at $4,602.34 an ounce but was up nearly 14 percent so far in August following efforts by the U.S. Treasury Department to cap rising long-term borrowing costs through aggressive bond buybacks. U.S. gold futures were down 0.1 percent at $4,658.46.
The U.S. dollar index was little changed near a one-week high against major peers as investors await Federal Reserve Chairman Kevin Warsh’s speech at the Jackson Hole economic symposium later in the day.
Despite Warsh’s reluctance to provide traditional forward guidance, his remarks on the central bank’s approach to inflation, interest rates, the economy and its broader policy framework might significantly shape market expectations regarding potential interest rate hikes.
On the geopolitical front, market participants await greater clarity over whether talks between Iran and Qatar might open the Strait of Hormuz and reduce supply disruptions from the Middle East war.
The White House confirmed it was not in talks with Iran despite diplomatic efforts by other countries.
Iran’s military said it had reached a revenue-sharing agreement with Oman over the strategic waterway, although Tehran stressed that the Strait of Hormuz cannot be opened due to ceasefire breaches by the U.S. and Israel.
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