Dollar Weakness Sends Gold Prices Soaring

Gold prices surged by about 3% on Wednesday, reaching their highest level in more than two and a half months. The increase was driven by a weaker US dollar and lower bond yields.

The US dollar index fell 0.6%, making gold less expensive for holders of other currencies. This, combined with the drop in bond yields, boosted the appeal of non-yielding bullion.

David Meger, director of metals trading at High Ridge Futures, attributed the rise to the declining odds of a Fed interest rate hike in September.

The Federal Reserve's upcoming policy meeting minutes are expected to be released soon. Expectations that the Fed will hold rates steady stand at 65%, according to CME Group's FedWatch Tool.