Gold Soars to Three-Month High Amid Dollar Weakness

Gold prices surged to a three-month high on Thursday, reaching $4,601.29 per ounce, as a frail dollar and technical momentum drove the market. This follows a big one-day rise in gold since early February on Wednesday.

The metal has gained 5% so far this week, with spot gold climbing 1.5% to $4,587.23 per ounce today. US gold futures rose 1.6% to $4,645.00.

Ole Hansen, head of commodity strategy at Saxo Bank, attributed the market's movement to investor concerns about the level of US debt and a softer dollar. He noted that technical momentum buying above gold's key 200-day moving average level is also contributing to the rally.