Gold Prices Soar 9% in August Amid Weaker Dollar and Easing Fed Hopes

Gold prices have surged by 9% in August as investors become more optimistic about the US Federal Reserve's monetary policy path. The weaker US dollar has also made gold more attractive to overseas buyers, boosting demand.

The spot price of gold reached $4,397 an ounce on Friday, putting it on track for a second straight weekly gain. This comes after softer-than-expected US inflation data and a decline in expectations of a US Federal Reserve rate hike at its upcoming meeting.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said that gold traded higher this week, gaining around 1%, with the rally extending to nearly 2.5% at its peak, supported by softer-than-expected US inflation.