Gold Surges to Three-Month High as Dollar Weakens and Economic Strains Mount

Gold prices have surged to their highest levels in over three months as investors sought refuge in the precious metal due to a weakening US dollar and concerns about underlying economic strains. The spot gold price was up 0.5% at $4,627.42 per ounce, while US gold futures edged 0.1% higher to $4,683.80.

The stronger performance of gold comes ahead of key inflation data releases from the US, which is expected to provide fresh clues on the country's interest rate outlook. Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium this week will also be closely watched for any shift in tone on policy and how it aligns with recent bond-market developments.

Tim Waterer, chief market analyst at KCM Trade, noted that gold is looking 'spritely' to start the week and is taking its cues from a softer dollar. He added that traders will be listening closely for any shift in tone on policy and how it sits with recent bond-market developments.

In related news, oil prices slipped more than $1 a barrel as investors took profits ahead of the expected announcement of economic sanctions against Iran.