Gold Price Today, August 24: Gold prices rose to a 14-week high on Monday (August 24), supported by weakness in the US dollar and expectations that the Federal Reserve could keep interest rates steady at its next policy meeting.
As of 5:50 am IST, spot gold was up 0.4 per cent, or USD 16, at USD 4,618.05 an ounce. The yellow metal rose to its highest level since May 15, 2026, marking a more than three-month high.
Spot silver also traded above the USD 69-per-ounce mark after rising to a more than three-month high in the previous session.
Weaker USD adds support to gold prices
The gains in bullion came as the US dollar weakened. The dollar index, which measures the greenback against a basket of six major currencies, was trading at 98.79.
A weaker US dollar makes gold cheaper for holders of other currencies, potentially boosting demand. A softer dollar can also reflect expectations of easier monetary policy, which tends to support non-yielding assets such as gold.
Fed rate outlook supports gold
Market expectations around the Federal Reserve’s next policy move are also supporting bullion prices.
According to the CME FedWatch Tool, markets were pricing in around a 59 per cent probability that the Fed would keep interest rates unchanged at its next FOMC meeting in September.
Steady or lower interest rates generally benefit gold by reducing the opportunity cost of holding the non-yielding asset. Expectations of a less hawkish Fed can therefore provide additional support to bullion prices.
Oil prices remain a headwind
However, elevated crude oil prices could limit gains in gold by keeping inflation concerns alive.
Despite declining in Monday’s session, crude oil futures remained above the USD 85-per-barrel mark. Brent crude futures were trading at around USD 91.52 a barrel, while WTI crude futures were at about USD 85.93 a barrel.
Higher oil prices can add to inflationary pressures and raise expectations of tighter monetary policy. This could push bond yields higher and weigh on non-yielding assets such as gold.
PCE inflation data, jobless claims in focus
Investors will now turn their attention to key US economic data due later this week, particularly the Personal Consumption Expenditures (PCE) Price Index on Wednesday and weekly jobless claims.
The PCE Price Index is closely watched by gold investors as it is the Federal Reserve’s preferred measure of inflation and can influence expectations around the central bank’s interest-rate path.
A softer-than-expected inflation reading could strengthen expectations of an easier Fed policy and provide further support to gold, while a hotter reading could revive concerns over tighter monetary policy.
US-Iran tensions add to market focus
Geopolitical developments will also remain on investors’ radar, particularly the latest developments involving the US and Iran.
Iran’s foreign minister on Sunday dismissed the threat of new US sanctions as a sign of desperation and said the expected measures would fail to defeat Tehran. US Treasury Secretary Scott Bessent, who is due to hold a press conference at 2 pm EDT (1800 GMT) on Monday, has threatened to impose what he described as the “toughest sanctions in history” on Iran, Reuters reported.
