Gold Prices Soar to 3-Month High on Weaker Dollar and Easing Rate Hike Concerns

Gold prices have rebounded to their highest level in over three months, driven by a weaker dollar and easing expectations of a US Federal Reserve rate hike. The precious metal now trades above $4,630 per ounce on the London Bullion Market Association, up over 16% from last month's levels.

The US Treasury's announcement that it will at least double buybacks of its longer-term bonds has led to yields subsiding, making gold more attractive as a safe-haven asset. The dollar index fell to a multi-month low, making the precious metal more affordable for investors in other currencies.

Market participants expect gold prices to rise further if the Fed maintains a status quo on rates for the remainder of the year, with some predicting prices could reach $4,900-$5,000. However, others caution that the outlook remains clouded, with eyes on more data and potential volatility in the market.