Gold Prices Soar as Weaker Dollar and Slumping Rate Hike Bets Boost Demand

Gold prices surged to $4,417.24 an ounce on Monday as a weaker US dollar and diminishing expectations of a Federal Reserve rate hike boosted demand for the precious metal.

The spot price rose by 0.9%, while U.S. gold futures for December delivery settled 0.8% higher at $4,473.70.

Bart Melek, global head of commodity strategy at TD Securities, attributed the rise to a stagflationary environment, with weaker employment and expectations that the Fed would tolerate current inflation levels.

The dollar's decline to its lowest level in over two months made gold less expensive for buyers using other currencies.