Gold Hits Three-Month High as Weak Dollar Fuels Safe-Haven Demand

Gold prices reached a three-month high on Monday as investors continued to seek safe-haven assets due to concerns about inflation and the US dollar's weakness. Spot gold rose by approximately 0.8% to $4,641.27 an ounce in Asian trading, while US futures advanced to around $4,697.70.

The rally is attributed to a softer US dollar, which fell sharply last week, and concerns about Treasury intervention and US fiscal policy, fueling demand for hard assets like gold and Bitcoin.

Analysts believe that the recent Treasury move to expand buybacks of longer-dated securities has revived concerns about debt sustainability and the purchasing power of the dollar, encouraging investors to favour scarce assets.