Gold Soars to Three-Month High as Dollar Weakens and Interest Rate Fears Mount

Gold prices have reached their highest level in over three months, driven by a weaker US dollar and growing investor interest in interest rate prospects. On Monday, spot gold rose 0.8% to $4,641.27 an ounce, its highest point since May 15. Meanwhile, US gold futures increased by 0.4% to $4,697.70.

The upcoming release of US July PCE inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium will provide crucial clues on the Fed's interest rate path. Investors are watching closely for a cautious policy tone, which could support further gains in gold.

Geopolitical tensions are also contributing to market uncertainty as the US prepares new economic sanctions against Iran and its trading partners. Oil prices have fallen by more than $1 per barrel due to profit-taking, while other precious metals like silver, platinum, and palladium have remained relatively stable.