Gold Rallies as Weaker Dollar Boosts Safe-Haven Demand

Gold prices surged on Friday as investors sought safer assets amidst concerns over inflation and interest rates. Spot gold gained 0.6% to $4,376.02 per ounce by 9:09 a.m. EDT (1309 GMT), while US gold futures rose 0.3% to $4,433.90.

The weaker US dollar index, down 0.3%, made greenback-priced bullion more affordable for buyers overseas. This decline in the dollar index is supporting gold prices today, according to Jim Wyckoff, a market analyst at American Gold Exchange.

The inflation data released this week was largely in line with expectations, which has significantly lowered expectations of an interest rate increase next month. The FedWatch Tool indicates that markets are now pricing in a 31% chance of a rate hike at the September meeting, down from about 55% last week.