Dollar Weakness Boosts Gold Amid Ongoing Oil Price Rally

Gold prices surged over 1% on Wednesday as the US dollar came under pressure. The greenback hovered near a two-week low, making gold less expensive for holders of other currencies.

The rise in oil prices above $100 per barrel due to the widening war in the Middle East has led to an inflationary push, but it's also causing bond rates to increase as overall monetary policy aims to contain inflation more closely than in the past.

Traders are eagerly awaiting key US inflation data this week, with the producer price index scheduled for Thursday and consumer inflation figures on Friday. These releases will provide crucial clues on whether the Federal Reserve will hike interest rates to combat price pressures.