Gold Prices Surge 4% as US Dollar Weakens

Global gold prices have risen by nearly 4% in the past week, extending their winning streak to three consecutive weeks. The increase is attributed to a weakening US dollar and developments in the US bond market.

The current spot world gold price stands at $4,536.52 per ounce, representing a 0.51% gain from the previous day's trading session. December gold futures contracts have also increased by 0.49% to $4,593.60 per ounce.

The US dollar's depreciation has made gold more attractive to buyers holding other currencies, contributing to the rise in gold prices. The CME FedWatch Tool indicates that traders are valuing a 64% chance of the Federal Reserve keeping interest rates unchanged next month, while there is a 36% possibility of raising interest rates.

High interest rates often exert downward pressure on gold as the precious metal does not yield returns. In contrast, silver prices have risen by 1.29%, platinum by 1.82%, and palladium by 1.33% in the same period.