A new gold price rally is igniting this week, with the precious metal trading at a four-week high yesterday (Tuesday). Amid ongoing turbulent times on the geopolitical front, the gold bulls are gathering momentum and gaining ground into the often quieter late summer period.
Price levels hit £1,491 ($1,803) as the US dollar appeared weaker, stock markets were mixed, and risk aversion ticked up. This move could be significant for gold, marking its highest level in a month, with two monthly reports on inflation due this week. The latest Consumer Price Index is due to be revealed today (Wednesday) with the Producer Price Index following on Thursday. Both indexes were heightened last month, meaning the latest readings will be closely monitored for signs that the Federal Reserve’s aggressive policy stance is starting to bear fruit.