Gold Hits One-Month Peak on Weaker Dollar and Lower Oil
Gold prices rose for a third consecutive day, reaching a one-month high on Wednesday. The metal's value increased by 2.4% to $4,175.53 per ounce at 0640 GMT, its highest level since July 7. US gold futures also saw a 2% gain, reaching $4,235.30.
The appreciation in gold prices can be attributed to the weakening of the US dollar and lower oil prices. A softer greenback makes gold more attractive to holders of other currencies, as it becomes cheaper for them to purchase the metal. Lower oil prices also ease inflation concerns, which in turn affects interest rate expectations.
The Strait of Hormuz agreement between the US, Iran, and Oman is expected to be delayed due to ongoing threats from the US. This development has not directly impacted gold prices but may have contributed to the market's cautious sentiment.