(RTTNews) – Gold extended gains on Monday after rising over 5 percent last week, driven by a softer dollar amid expectations that U.S. authorities will keep long-term borrowing costs in check.
Spot gold was up 0.7 percent at $4,637 an ounce, reaching its highest level in more than three months as the U.S. dollar lost further momentum on worries about Washington’s swelling fiscal obligations – now at $40 trillion after doubling in under ten years. U.S. gold futures edged up 0.2 percent to $4,691 an ounce.
As inflation worries mount, investors await the release of the U.S. Federal Reserve’s preferred inflation gauge as well as Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium this week for additional clues on the rate outlook.
As the week progresses, U.S. GDP estimates, durable goods orders and consumer confidence figures will provide important clues on the strength of the U.S. economy.
Traders also braced for the announcement of fresh U.S. sanctions aimed at Iran.
U.S. Treasury Secretary Scott Bessent will hold a press conference later today, where he is likely to announce tougher sanctions to economically isolate Iran.
Iranian Foreign Minister Seyed Abbas Araghchi said the renewed threats of economic sanctions reflected desperation after what he described as the failure of previous measures.
www.nasdaq.com