Gold Surges to Three-Month High as Weaker Dollar and Technical Breakout Fuel Rally

Gold prices surged to their highest level in more than three months on Friday, August 21, as a weaker US dollar and technical breakout fueled the rally. Spot gold rose by 2.4% to $4,623.94 an ounce, with futures settling at $4,680.60.

The metal broke through its closely watched 200-day moving average near $4,513, a bullish signal for analysts. Bart Melek, global head of commodity strategy at TD Securities, attributed the advance to both the technical breakout and the weaker dollar.

The next step in gold's price increase would be reaching $4,700 if this momentum continues, according to Melek. The dollar traded near its lowest level since mid-May due to investors' concerns over US Treasury measures that could weaken confidence in the currency.