Dollar Weakness Drives Gold Prices to Three-Month High
World gold prices reached their highest level in over three months on August 24, as the US dollar weakened. Spot gold increased by 0.8% to $4,641.27 per ounce, the highest point since May 15.
The upward momentum continued from the previous positive trading week when gold rose more than 5%. Gold futures in the US also saw a slight increase, reaching $4,697.70 per ounce.
The weakening dollar is supporting the rise of gold prices, making it more attractive to investors holding other currencies. The precious metal market is now looking for new signals about US interest rate policy.
US Personal Consumption Price Index (PCE) data for July is expected to be released this week and will help investors assess inflation prospects. If the data shows reduced price pressure, expectations of a possible interest rate adjustment may increase, creating more momentum for gold.