Gold Rallies on Dollar Weakness Amid Inflation Fears

Gold and silver prices rose in late-afternoon U.S. trading Wednesday as a weaker dollar and safe-haven demand offset higher Treasury yields and crude oil prices.

The spot gold price climbed to $4,396.40 an ounce, up 0.96%, while spot silver surged to $67.080, a gain of 2.20% on the session.

Despite the gains, precious metals were held back by higher yields and another surge in crude oil prices, which pushed Brent crude above $100 a barrel for the first time since July.

The Strait of Hormuz remains a major geopolitical risk factor, with Iran saying it attacked 10 vessels near the strait after the U.S. sank five Iranian tankers. The conflict has disrupted flows through the waterway and further raised inflation expectations and Treasury yields.