Gold Prices Soar Amid Weaker Dollar and Lower Bond Yields

Gold prices surged on Wednesday after the US dollar index fell 0.6%, making gold less expensive for holders of other currencies.

The precious metal jumped about 3% to its highest price in more than two and a half months, with spot gold reaching $4,448.97 per ounce by 9:37 a.m. EDT (1337 GMT).

David Meger, director of metals trading at High Ridge Futures, said the odds of a Fed raising interest rates at the September meeting have dropped dramatically, putting pressure on the dollar and supporting the gold market.