Gold Surges to 15-Week High Amid Safe-Haven Demand and Weaker Dollar

Gold prices rose in European trading on Monday, extending gains for a second consecutive session and reaching their highest level in 15 weeks. The precious metal is supported by strong safe-haven demand, a weaker US dollar, and declining Treasury yields.

The US Dollar Index fell more than 0.1% on Monday, reflecting renewed weakness in the American currency against a basket of global currencies amid concerns surrounding the US sovereign debt crisis.

Investors are awaiting key US inflation data throughout the week, as well as Federal Reserve Chair Kevin Warsh's speech at the annual Jackson Hole symposium, to reassess expectations for US interest rates. Gold prices are expected to remain in positive territory, with a strong possibility of breaking above $4,700 an ounce and reaching fresh multi-month highs if the US dollar and Treasury yields continue to decline.