Gold Prices Soar to Three-Month High on Dollar Weakness and Treasury Policy
Gold prices surged on Monday to reach their highest level in over three months due to a potent combination of technical buying, a softer U.S. dollar, and recent policy announcements from the U.S. Treasury.
The spot gold price jumped 1.5% to $4,673.20 per ounce by mid-day trading, marking its highest point since May 14. This marked a significant gain for the precious metal, which has been driven higher by a weaker dollar and the recent bond buyback support plan announced by the U.S. Treasury Department.
Market sentiment turned firmly bullish after gold broke above its 200-day moving average last week, triggering technical momentum. Bullion has gained significant traction since last week, jumping over 5% in response to the U.S. Treasury's announcement and the resulting dollar weakness.
Institutional appetite for gold is also on the rise, with gold-backed ETFs recording massive inflows of 46.7 metric tons ($6.4 billion) last week, marking their strongest weekly demand surge in 10 months.