Gold Surges Past Three-Month High Amid Dollar Weakness

Gold has reached a three-month high, surpassing its $4,601.29 peak on May 15, driven by a weak US dollar and the US Treasury's surprise announcement of increased liquidity support.

The metal rose 1.5% to $4,587.23 per ounce by 11:01 GMT, with US gold futures increasing 1.6% to $4,645.00.

Ole Hansen, head of commodity strategy at Saxo Bank, attributed the surge in gold prices to investor concerns about spiraling US debt and fiscal sustainability.

Gold is now trading above its key moving averages, with the 200-day moving average currently around $4,513.23, a level that technical speculators consider bullish.