Gold Soars to Highest Since Late May on Weak US Dollar

Gold has reached its highest level since late May as the US Dollar weakens. The precious metal is on track to record gains for a third consecutive week and could appreciate further due to a broadly weaker USD.

The latest US inflation data showed signs of cooling price pressures, which has led investors to scale back their bets on an immediate interest rate hike by the Federal Reserve. This has kept the USD depressed near its lowest level in over three months.

However, investors remain concerned about inflation risks stemming from higher oil prices, particularly due to the ongoing US-Iran standoff and the recent maritime blockade announced by Yemen's Iran-backed Houthi militant group.