Gold Hits Three-Month High as Dollar Weakens Amid Economic Uncertainty

Gold prices have surged to their highest level in over three months as the US dollar falters. Spot gold rose by 0.8% to $4,641.27 per ounce, while US gold futures edged 0.4% higher to $4,697.70.

The weaker dollar has made greenback-priced bullion more affordable for holders of other currencies, with prices gaining over 5% last week. Analysts point to the softer dollar and potential underlying economic strains as key drivers behind the surge in gold prices.

Market attention is now focused on upcoming US inflation data and a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium this week. Traders are looking for fresh clues on the US interest rate outlook, with some expecting a balanced or cautious tone from Warsh that could keep the door open for gold to extend its gains.