Gold hits over three-month high on dollar weakness, Treasury bond buyback plans

JUST IN: Gold hits over three-month high, boosted by a weaker US dollar and the US Treasury's bond buyback plans, trading near $4,677/oz on track for its strongest monthly gain since 1999.

Gold is having its best month since 1999. Spot hit four thousand six hundred and seventy seven dollars an ounce on Tuesday, its highest since mid May, and it's up more than fifteen percent in August alone. These are the bars everyone suddenly wants.

Two things are doing the pushing. The dollar index has dropped almost a percent this month, and the Treasury's bond buyback plan is keeping a lid on yields, down three basis points even in an elevated August. Weaker dollar, lower yields, gold wins twice. Silver's along for the ride too, at sixty nine dollars an ounce.

Now every trader is watching Fed Chair Warsh, who speaks ahead of Jackson Hole later this week. Citi says a hawkish speech stops this rally cold, but a dovish surprise would be ultra bullish, because markets would pile straight back into the debasement trade over Fed independence and US debt.

Fifteen percent in a month. Gold isn't whispering about the dollar anymore, it's shouting.

This is Sara White, reporting for HIT.