Gold Prices Soar Over 15% as Dollar Weakens and Yields Stabilize

Gold prices have surged to their highest level in over three months, driven by a weaker US dollar and the US Treasury's plans to buy back government bonds. This move has limited further increases in yields.

Spot gold rose 0.6% to $4,677.19 per troy ounce, its highest since mid-May. According to UOB, gold is on track for its strongest monthly gain since September 1999, having risen more than 15% since the beginning of August.

The rally has also extended to silver, which rose 0.4% to $69.19 per troy ounce. A weaker dollar makes gold, priced in US currency, more attractive to investors using other currencies. Lower US Treasury yields have also reduced the opportunity cost of investing in gold.