Gold Prices Spike Amid Dollar Weakness, Oil Decline
Gold prices hit a one-month high on Wednesday as oil slid and the dollar softened. Spot gold rose 2.4% to $4,175.53 per ounce, its highest level since July 7.
The US dollar traded subdued, making greenback-priced metals more attractive to holders of other currencies. Lower oil prices can ease inflation concerns that shape expectations of higher interest rates.
Kelvin Wong, a senior market analyst at OANDA, said gold's relation with oil remains intact as oil prices carry significant weight on the global economy through inflationary pressure.
Analysts at TD Securities expect gold to remain range-bound near current levels. The Federal Reserve is set to meet on September 15-16 and traders are pricing in a 59% probability of a rate hike, down from 67% a day earlier.