Gold Prices Soar as Dollar Weakens Amid Interest Rate Hike Uncertainty

The gold market has continued its upward momentum, driven by a weakening US dollar and diminishing prospects of an imminent interest rate hike. Spot gold prices rose 0.5% intraday to around $4,400 an ounce, while silver outpaced gold with a 1.6% surge to $65.73 an ounce.

The dollar's decline was attributed to softer US retail sales and waning consumer sentiment, which trimmed expectations for a September Federal Reserve interest rate hike. The steeper Treasury yield curve also suggested the Fed might refrain from an aggressively hawkish approach soon.

In early Asian trade Wednesday, gold prices edged upwards as US Treasury yields softened, spurring demand for the metal. Geopolitical concerns, including new Strait of Hormuz attacks and potential US actions against Iran, lent support to bullion.