Weaker Dollar Boosts Gold as Rate Hike Expectations Fall

Gold prices surged on Friday, August 14, as the US dollar weakened. The weaker currency made gold less expensive for buyers using other currencies and reduced expectations of an interest-rate hike in September.

Spot gold rose 0.7% to $4,379.95 an ounce by 1:40 pm EDT (5:40 pm GMT), with bullion about 0.9% higher for the week. US gold futures settled 0.4% higher at $4,437.30.

Jim Wyckoff, a market analyst at American Gold Exchange, attributed part of the increase to movements in the currency market. The dollar index slipped 0.3%, making dollar-denominated gold less expensive and more attractive to buyers using other currencies.