Gold Soars to Three-Month High on Dollar Weakness and Geopolitical Tensions
Gold prices surged to their highest levels in over three months on Monday, driven by a weaker U.S. dollar and growing demand for safe-haven assets amid escalating geopolitical tensions.
The spot price of gold rose 0.9% to $4,643.63 per ounce, its highest level since mid-May, with U.S. gold futures also gaining 0.4% to $4,699.10 per ounce.
The rally comes as the dollar languished near multi-month lows after the U.S. Treasury Department pledged to buy back more long-term bonds, a move that raised concerns about U.S. fiscal prospects and pressured the currency.
Market participants are focusing on the upcoming July Personal Consumption Expenditures Price Index and Federal Reserve Chair Kevin Warsh's speech at the annual Jackson Hole symposium for fresh signals on interest rates.