Gold Prices Spike as Weaker Dollar Fuels Demand Ahead of Key Economic Data

Gold prices reached their highest level in more than three months on August 24, supported by a weaker US dollar and investor anticipation of US inflation data and Federal Reserve Chairman Kevin Warsh's speech. The Straits Times reported that spot gold prices rose 0.9% to $4,643.63 per ounce by 0644 GMT.

This marked the highest price since mid-May, with gold having risen over 5% in the past week. US gold futures also gained 0.4% to $4,699.10 per ounce. The weakening dollar made gold cheaper for holders of other currencies, driving up demand.

Market analyst Tim Waterer noted that gold movements are mainly supported by a weaker dollar and rising bond yields, which can indicate economic pressures and policy uncertainty.