Weaker Dollar Boosts Gold Prices as Analysts Eye Rate Expectations

Gold prices rebounded on Monday to reach $4,068.54 an ounce, up 0.7% from the previous day's close. The recovery was fueled by a weaker dollar and lower oil prices, which eased concerns about Federal Reserve tightening.

The dollar weakened after authorities intervened to support the yen, making gold cheaper for buyers using foreign currencies.

Analysts believe that the metal needs further weakness in the dollar and Treasury yields before Monday's advance can be considered a durable bottom. Tim Waterer, chief market analyst at KCM Trade, described the move as an 'upbeat but guarded start' in comments to Reuters.

Aakash Doshi, head of gold strategy at State Street Investment Management, expects gold to reach $4,500 to $4,750 before year-end if changing rate expectations pull the two-year Treasury yield below 4%.