Dollar Weakness Sends Gold Prices Soaring to Near $4,400

Gold prices rose on Wednesday, August 12, as the US dollar weakened, pushing bullion near $4,400 per ounce. The precious metal has remained elevated for two consecutive sessions, hovering around the $4,300-mark.

The weakness in the US dollar provided support to gold prices, making the dollar-denominated metal cheaper for holders of other currencies and potentially boosting demand.

Investors are awaiting key US inflation data, including the Consumer Price Index (CPI) report on Wednesday and the Producer Price Index (PPI) data on Thursday. Higher-than-expected inflation could support gold's appeal as a hedge against rising prices, but stronger inflation may also keep interest rates elevated for longer.

Rising crude oil prices capped gains in bullion, with Brent crude futures up 0.6% to near $90 per barrel and WTI futures gaining 0.7% to around $83.80 per barrel.