Gold Soars as Dollar Weakness Persists Amid Fading Rate-Hike Expectations

Gold's upward momentum continues into this week, buoyed by a weak US dollar and fading expectations of Federal Reserve rate hikes. The metal has been on a three-week winning streak, with recent gains largely driven by a softening greenback.

The US dollar remains under pressure, weighed down by concerns over unsustainable levels of debt in the country and its implications for inflation. This is leading to higher yields, but not due to increased rate-hike expectations, rather, it's a reflection of growing worries about servicing that debt.

This week promises to be eventful, with several fundamental events set to shape the direction of gold and other financial markets. The US Treasury Secretary is expected to announce new sanctions on Iran, which could have significant implications for trade relations between the two countries, including with China, the largest buyer of Iranian energy exports.

Additionally, US fiscal concerns will be in focus, particularly with regards to fiscal consolidation. While meaningful spending cuts or tax increases are unlikely, any moves towards consolidation could impact market sentiment and put further pressure on the dollar.