Gold Prices Soar on Weaker Dollar, Higher Interest Rates Loom

Gold prices surged over 3% on Wednesday, driven by a weaker US dollar and lower Treasury yields. The spot price of gold reached $4,199.78 per ounce by 09:44 a.m EDT (1344 GMT), its highest level since June 22.

U.S gold futures rose 2.6% to $4,260.80. Tai Wong, an independent metals trader, attributed the increase to two days of lower yields and a week of softer dollar.

The US dollar was near its lowest against the Japanese currency in three months, making dollar-priced bullion more affordable for overseas buyers. However, higher interest rates could diminish gold's appeal due to its non-yielding characteristic.