Gold Prices Jump on Weaker Dollar and Soaring Oil

Gold prices surged more than 1% in trading on Wednesday (10 September) as a weaker US dollar and higher oil prices drove gains. Spot gold rose 1.4% to $4,414.30 an ounce at 13:54 EDT or 17:44 GMT.

Dollar-denominated gold became cheaper for holders of other currencies due to the weakening US dollar, which was hovering around a two-week low, according to David Meger, Director of Metals Trading at High Ridge Futures.

The surge in oil prices above $100 a barrel amid the escalation of the war in the Middle East also contributed to inflationary pressures and could affect the Fed's monetary policy direction, said Rhona O'Connell, StoneX Head of Market Analysis.

Markets are awaiting the release of US producer price index (PPI) data on Thursday and consumer inflation data on Friday, which will be an important indicator for markets in assessing the Fed's next steps to control price pressures and determine the direction of interest rates at next week's policy meeting.