Gold Prices Soar 9% in August Amid Weaker Dollar and Easing Fed Hike Expectations

Gold prices have surged 9% in August due to a weaker US dollar and easing expectations of a Federal Reserve rate hike, boosting demand for the safe-haven metal. Spot gold reached $4,397 an ounce, its highest level in 10 weeks.

The latest rally has lifted gold's monthly gains to 9% so far in August, positioning for the strongest monthly performance since January's 13% jump. Although gold remains 21.5% below its record high of $5,602 set earlier this year, softer inflation and jobs data have eased pressure on policymakers to tighten monetary policy.

The US dollar index slipped below 99.6, moving closer to its two-month low of 95.53 recorded on August 7. A weaker dollar typically supports gold prices by making the dollar-denominated commodity cheaper for overseas buyers.