Gold Surges to Three-Month High Amid Weaker Dollar and Geopolitical Tension

Gold prices surged to their highest level in about three months on Monday as a weaker US dollar and growing geopolitical tension boosted the commodity.

The spot gold price was up 0.66 per cent at $4,646.52 per ounce, with gains adding to more than 5 per cent last week.

Naeem Aslam, chief investment officer at Zaye Capital Markets, attributed the increase in gold prices to a series of factors, including a weaker US dollar and geopolitical uncertainty.

Aslam stated that 'US President Donald Trump's warning that military intervention remains available, his comments on US control around the Strait of Hormuz, and the renewed breakdown in Canada trade negotiations all add to geopolitical and trade uncertainty.'

The White House Treasury Secretary Scott Bessent warned that countries supporting Iran economically would face consequences, adding to the uncertainty.