Gold Prices Soar to Three-Month High Amid Dollar Weakness

Gold prices surged to their highest in over three months on Monday as a weaker US dollar lent support, ahead of key inflation data and Federal Reserve Chair Kevin Warsh's speech.

The spot gold price rose by 0.9% to $4,643.63 per ounce, its highest level since mid-May, while US gold futures edged 0.4% higher to $4,699.10.

The softer dollar made greenback-priced bullion more affordable for holders of other currencies, said Tim Waterer, chief market analyst at KCM Trade, who noted that gold is taking its cues primarily from the weaker dollar and focusing on underlying economic strains and policy uncertainty.

Waterer added that traders will be watching the July Personal Consumption Expenditures price index data and Fed Chair Warsh's speech at the Jackson Hole symposium for clues on the US interest rate outlook, with a balanced or cautious tone potentially keeping gold prices elevated.