Gold Surges Past Three-Month High as Dollar Weakens

Gold prices have reached their highest level in over three months due to a muted dollar and increased demand from investors. Spot gold has risen 1% to $4,649.08 per ounce, while US gold futures have increased by 0.6% to $4,706.20.

The price increase comes after the US Treasury Department's buyback support plan pushed the dollar lower last week, making gold more affordable for foreign investors. Analysts say that the consolidation of gold prices above $4,600 will depend on the continued weakness of the dollar and stable or declining Treasury yields.

Market participants are now awaiting key economic indicators, including the July Personal Consumption Expenditure price index due this week and Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Symposium next Friday. The FedWatch Tool indicates a 36% chance of a rate hike in September, with a 64% chance of rates remaining unchanged.