Gold Gains on Weaker Dollar, Oil Price Surge Ahead of Inflation Data
Gold prices surged more than 1% in trading on Wednesday (10 September) as a weaker US dollar and higher oil prices supported gains. The spot gold price rose to $4,414.30 an ounce at 13:54 EDT or 17:44 GMT.
David Meger, Director of Metals Trading at High Ridge Futures, attributed the support for gold prices to the weakening dollar. 'There is a little supportive sentiment for the gold market as the dollar has been under mild pressure recently,' he said.
The US dollar index hovered around a two-week low, making dollar-denominated gold cheaper for holders of other currencies. Meanwhile, oil prices broke above $100 a barrel amid an escalation of the war in the Middle East, contributing to inflationary pressures and potential Fed rate hike decisions.