Gold Prices Soar to Three-Month High Amid Dollar Weakness

Gold prices rose over 5 percent weekly due to a weakening US dollar and growing investor interest in bullion as a hedge against economic uncertainty. Spot gold reached $4,624 per ounce on Friday, its highest level in more than three months.

The rally gained pace after the US Treasury Department's plans to expand purchases of longer-dated government bonds put pressure on the dollar. A weaker dollar makes gold cheaper for buyers holding other currencies, supporting international demand.

Gold's surge has also been reinforced by technical momentum, with the metal moving above its 200-day moving average and strengthening expectations of further gains. Analysts have identified the $4,700 region as an important potential target if upward momentum continues.