Gold Prices Surge as Dollar Weakness Boosts Bullion

Gold prices rose on Wednesday, August 12, due to weakness in the US dollar. The precious metal has remained elevated for two consecutive sessions, hovering around $4,300 per ounce. Spot gold was up 0.3% or $13 at $4,381.60 per ounce.

The strength of gold is also attributed to its appeal as a store of value during periods of economic and market uncertainty. A weaker US dollar makes the dollar-denominated metal cheaper for holders of other currencies, potentially boosting demand.

Investors are awaiting key US inflation data, with the Consumer Price Index (CPI) report due later on Wednesday, followed by the Producer Price Index (PPI) data on Thursday. Higher-than-expected inflation could support gold's appeal as a hedge against rising prices.