Gold Soars as Dollar Weakens and Treasury Yields Cap

Gold prices have surged in August, reaching their highest level in over three months. The precious metal rose 0.6% to $4,677.19 per troy ounce, exceeding its mid-May peak.

The rally is largely attributed to a weaker US dollar and the US Treasury's plans to buy back government bonds, which have limited further increases in yields.

Gold futures also gained 0.5% to $4,720.30 per troy ounce, hitting a more than three-month high. Silver rose 0.4% to $69.19 per troy ounce, extending the rally across the precious metals sector.

The US dollar index has fallen 0.8% since the beginning of August, making gold more attractive to investors using other currencies. Lower US Treasury yields also reduce the opportunity cost of investing in gold.