On the 29th local time, the international gold price rose significantly. The December gold futures price on the New York Mercantile Exchange closed at $3,516.10 per ounce, an increase of 1.20%. Looking back on the entire August, the main contract price of gold futures on the New York Mercantile Exchange rose by more than 5%. What are the factors behind this?

On the 29th local time, the latest inflation data released by the United States showed that the core personal consumption expenditure price index in the United States rose by 2.9% year-on-year in July. After the release of the latest inflation data, the market strengthened the expectation of the Federal Reserve's interest rate cut in September, and the international gold price rose significantly. As of the close of the 29th, the December gold futures price on the New York Mercantile Exchange closed at $3,516.10 per ounce, an increase of 1.20% in a single day.

Looking at the whole week, as the market worried that the independence of the Federal Reserve was challenged by the White House and investors' risk aversion increased, the international gold price rose for four consecutive trading days after falling slightly on Monday, and the cumulative increase this week reached about 2.86%. Throughout August, the international gold price rose by 5.002%, setting the best monthly performance since April this year.

Analysts at Bank of America pointed out that there are two important reasons to push up international gold prices: First, Federal Reserve Chairman Powell's speech at the annual meeting of global central banks in Jackson Hole on August 22 hinted that even if there are upward risks to U.S. inflation, the Federal Reserve is still interested in cutting interest rates. After the open attitude, market expectations for the Federal Reserve to cut interest rates in September increased sharply, and international gold prices once again closed above $3,400 per ounce; Second, the recent dismissal of Federal Reserve Governor Cook by Trump caused the market to question the independence of the Federal Reserve, further weakening the market's confidence in US dollar assets. Some investors bought a large amount of gold as a safe haven, prompting the international gold price to rise to above $3,500 per ounce in the short term.

Currently, the market generally expects the Fed to lower interest rates once or twice this year, which represents the overall support for commodity prices including gold and silver, several international financial institutions have raised the price of gold, the Swiss Bank has currently raised the international gold price target price in the first half of 2026 to $ 3,700 per ounce, and the Bank of America analysts expect that by the first half of 2026, the international gold price will hit the high $ 4,000 per ounce.