Gold Surges Near 10-Week High as Dollar Weakens and Oil Prices Ease

Gold prices surged in European trading on Wednesday, rebounding from a brief decline and approaching their highest levels in ten weeks.

The precious metal rose 1.3% to $4,424.33 an ounce, following a weak US dollar and easing oil prices amid reports of progress towards a final agreement between Iran and Oman over the Strait of Hormuz.

A weaker dollar makes gold more attractive to buyers holding other currencies, while lower oil prices reflect growing hopes that the Strait of Hormuz could reopen soon.

The Federal Reserve's interest rate decision is also on investors' minds, with key US inflation data due later today expected to provide crucial clues about the likelihood of a rate hike this year.