Gold Price Jumps 2.6% as Dollar Weakens Against Yen

The gold price surged to its highest level in two weeks after the US dollar tumbled against the yen, sparking a rally that also saw silver and other precious metals advance.

The spot bullion price jumped as much as 2.6%, marking its biggest intraday increase since August 19, as traders reacted to remarks from Federal Reserve policymakers on interest rates.

Federal Reserve Governor Christopher Waller said he expects 'reasonable' inflation prints next month, leading traders to reduce their bets on rate hikes by the US central bank this year.

'Gold is seeing a strong rebound, which was already underway before Fed Governor Christopher Waller came to the rescue by helping lower bond yields and reducing market expectations for a September rate hike,' said Ole Hansen, head of commodity strategy at Saxo Bank.