Gold on Track for Strongest Monthly Performance Since February Amid Rate Hike Concerns
Gold futures are set to record their best month since February despite investor concerns over potential interest rate hikes. The precious metal rose nearly 10% in August, though it recently pulled back after Federal Reserve Chairman Kevin Warsh indicated that further rate increases may be necessary to control inflation. The market reaction was also influenced by U.S. military strikes on Iranian rocket launchers near the Strait of Hormuz, which triggered renewed fears about global supply disruptions and rising oil prices. Gold futures for December delivery were trading around $4,481 per troy ounce as investors reassessed rate expectations following Warsh's comments at Jackson Hole. Goldman Sachs predicts gold will reach $4,900 by the end of 2026 due to central bank reserve diversification and reduced interest rate hike forecasts. However, hawkish remarks from Fed officials have increased market odds for a September rate increase.
Tickers: $GS