Gold Prices Surge by Over 5% Amid Weakening Dollar and Volatile Yields

Gold prices have surged by over 5% in the past week, marking their third consecutive week of increase. According to data from Comex, December gold futures contracts rose by 74.21 USD to 4,645.61 USD/ounce, surpassing the 4,600 USD/ounce mark for the first time since May 15.

The upward momentum is attributed to a weakening US dollar, volatile US bond yields, and cash flow returning to precious metal assets. Market analysts predict that gold prices will continue to rise, with some experts anticipating a target of 4,700 USD/ounce.

Investors are eagerly awaiting the Jackson Hole thematic conference, where Fed Chairman Kevin Warsh is expected to deliver a speech on monetary policy signals. Mr. Han Tan, chief market analyst at Bybit, noted that investors expecting gold prices to continue rising may have to wait for clearer signals from the Fed before reaching the 5,000 USD/ounce mark.

Despite the bullish outlook, some experts caution that profit-taking pressure is possible if the market does not receive sufficient positive signals from the Fed. Additionally, rising oil prices may complicate inflation prospects and change interest rate expectations in a direction unfavorable for gold.