Gold Surges to 3-Month High on Dollar Weakness and Treasury Concerns
Gold prices surged to a three-month high on Monday as the US dollar weakened further. Spot gold rose about 0.8% to $4,641.27 an ounce in Asian trading after touching its strongest level since May 15.
US futures advanced to about $4,697.70. Bullion gained more than 5% last week as the dollar's weakness and concerns around Treasury intervention fueled demand for hard assets.
The dollar remained near multi-month lows on Monday after falling sharply last week due to the Treasury's decision to expand buybacks of longer-dated securities.
According to Bannockburn Global Forex managing director Marc Chandler, gold's move above $4,600 has strengthened its technical position. He sees a convincing extension above that level potentially opening the way towards roughly $4,680.