Gold Prices Soar to Three-Month High Amid Middle East Tensions

Gold prices hit a three-month high and were poised to wrap up the week with gains of over 5.6% after developments in the Middle East and a softer US dollar supported the metal's surge.

The price of gold pushed through $4,600, settling at $4,622, an increase of more than 2.3%. The US S&P Global Services PMI for August rose to 56.8, surpassing forecasts of 54, and improved from July's 54.6.

However, the Manufacturing PMI eased to a five-month low of 53.2 from 53.9 in the previous month. Markets also weighed the US Treasury's bond buyback plans, including proposals to double purchases of longer-dated securities.

The US Dollar Index stood near 98.82, while the US 10-year T-note yield rose 0.8% to 4.75%. Poland's central bank bought 7.8 metric tons of gold in July.

Traders are advised to position themselves for continued upward momentum by focusing on gold call options targeting the $4,650 and $4,700 resistance levels.