Gold Prices Soar 2.4% Amid Weakening Dollar and Falling Oil

Global gold prices surged by over 2 percent on Thursday, September 17, as the US dollar weakened and oil prices fell. The strengthening of gold prices was also driven by rising geopolitical risks and increased demand for gold as a safe asset.

The spot price of gold rose to $4,370 per ounce at 14:16 GMT, up 2.4 percent from the previous day's closing price. US gold futures also rose 0.54 percent to $4,410 an ounce.

Analysts attributed the increase in gold prices to several factors, including the decline in oil prices and the weakening of the US dollar index. The relationship between gold and energy prices is often inverse due to inflationary pressures, which means that falling energy prices can reduce pressure on the gold market.

Additionally, corrections after the sharp rise in yields on 10-year US government bonds also contributed to the increase in gold prices. However, high inflation and interest rates are expected to limit the potential for further gains in the short term.