Gold Sees Three-Month High as Dollar Weakness and Treasury Policy Boost Demand

Gold prices reached their highest level in over three months on Monday, driven by a combination of technical buying, a weaker U.S. dollar, and recent policy announcements from the U.S. Treasury.

The spot price of gold surged 1.5% to $4,673.20 per ounce by mid-day trading, marking its highest point since May 14. Gold futures for December delivery also advanced, climbing 1.1% to hit $4,730.40 per ounce.

The market's strong performance can be attributed in part to the U.S. Treasury Department's announcement of a bond buyback support plan last week, which weakened the dollar and made gold more attractive to international investors. Additionally, bullion has gained significant traction since breaking above its 200-day moving average, triggering technical momentum.

According to data from the World Gold Council, gold-backed ETFs recorded massive inflows of 46.7 metric tons ($6.4 billion) last week, marking their strongest weekly demand surge in 10 months.