Gold Prices Surge to Two-Month High Amid Dollar Weakness

Gold prices continued their upward trend on Monday, hitting a more-than-two-month high after spot gold rose 0.4% to $4,391.49 per ounce by 0520 GMT.

The increase in gold prices is attributed to the weaker U.S. dollar and soft economic data that reduced expectations for a U.S. interest rate hike next month.

According to Tim Waterer, chief market analyst at KCM Trade, 'Gold has taken the ball and run with it ​to start the week, with soft inflation numbers keeping the U.S. dollar under pressure and giving gold extra headroom to push towards the $4,400 level.'

The U.S. dollar index (.DXY) was down 0.2%, making greenback-priced metals more affordable for other currency holders.