Gold Surges to Three-Month High as Dollar Weakens

Gold prices surged to their highest level in over three months on Monday, driven by a weaker US dollar and expectations of economic uncertainty. Spot gold rose 0.9% to $4,643.63 per ounce, while U.S. gold futures increased 0.4% to $4,699.10.

The softer dollar made bullion more affordable for holders of other currencies, with analysts attributing the move to a wavering greenback and concerns over underlying economic strains. Tim Waterer, chief market analyst at KCM Trade, noted that gold is 'looking sprightly' and taking cues from the softer dollar.

The market's focus has shifted to key US inflation data and a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium later this week. Traders are watching for any shift in tone on the policy path, which could influence gold prices.