Gold Prices Soar on Weakened Dollar and ETF Demand

Gold prices have reached their highest level in over three months, driven by a weaker US dollar and significant inflows into gold-backed funds. According to data from the World Gold Council, these funds received 46.7 metric tons of metal worth $6.4 billion last week, the strongest weekly demand in the past 10 months.

This surge in demand has been accompanied by a weakening US dollar, which has made gold more affordable for buyers in other countries. As a result, spot gold rose to its highest level since May 14, reaching $4,680.70 per ounce, while US December gold futures increased to $4,730.40 per ounce.

Jim Wyckoff, an analyst at American Gold Exchange, notes that fundamental and technical factors are favoring further gains in the gold market. He also points out that bond yields have stabilized and edged lower, supporting the precious metal's price.