Gold Surges to Three-Month High Amid Weaker Dollar and Technical Buying

Gold prices surged to their highest in over three months on Monday (Aug 24), as technical buyers drove a rally fueled by the US Treasury's recent buyback announcement and a weaker US dollar. Spot gold gained 0.8% to $4,639.49 per ounce by 2:25 pm EDT (1825 GMT), with US gold futures for December delivery settling 0.4% higher at $4,697.80 per ounce.

Jim Wyckoff, a market analyst at American Gold Exchange, attributed the bullish trend to stabilizing bond yields and technical buyers piling into the rally. He predicted that 'the path of least resistance for gold would continue to be sideways to higher' in the coming weeks, barring a technical reversal signal.

Gold broke above its 200-day moving average in the week ended Aug 23, further strengthening its upward momentum. Gold-backed ETFs also saw significant inflows last week, with North American and Europe-listed funds leading the way, as investors sought to capitalize on the metal's rise.