Gold Breaks Above $4,400 as Dollar Weakens
Gold prices extended their two-week advance on Monday, reaching a new high of $4,399.44 per ounce, up 0.5% from Friday's close. This marks a significant milestone for gold, as it has now surpassed the $4,400 threshold that had been capping its progress since June.
The dollar was the primary driver behind gold's surge, falling 0.2% to 99.49 and making dollar-denominated bullion cheaper for buyers using other currencies. This mechanical channel effect was triggered by Friday's US consumer data, which reached the gold market and provided further support for the metal.
Global shares edged higher, with European equities advancing led by basic resources stocks as gold rose. Precious metals moved together, with silver leading the charge, climbing 1.7% to $65.83 per ounce. Palladium rose 1.8%, while platinum advanced 1.6%. Rhodium added 1.03% to $6.6813.
The bullion bid was amplified by domestic markets outside the dollar bloc, with India's Multi Commodity Exchange seeing October gold futures rise ₹676 (0.44%) to ₹1.55 lakh per 10 grams, while September silver futures gained ₹2,270 (0.96%) to ₹2.38 lakh per kilogram.