Gold Soars to Three-Month High Amid Weakening US Dollar
Gold prices have surged over 5% in the past week, driven by a weakening US dollar and growing investor interest in bullion as a hedge against economic uncertainty.
The spot price of gold climbed to around $4,624 per ounce on Friday, its highest level in more than three months. This marks the third consecutive weekly gain for the precious metal.
The rally gained momentum after the US Treasury Department's plans to expand purchases of longer-dated government bonds put pressure on the dollar, making gold cheaper for buyers holding other currencies and prompting greater demand from international investors.
Gold has also broken above its 200-day moving average, a level closely watched by traders. Analysts expect further gains if this momentum continues, with some targeting the $4,700 region as an important potential target.