Weaker Dollar Sends Gold Prices Soaring

Gold prices rose in European trading on Monday, extending gains for a second consecutive day and approaching their highest levels in ten weeks.

The increase was fueled by a decline in the US dollar against a basket of global currencies, with the US Dollar Index falling around 0.4% to an 11-week low of 99.29 points.

A weaker US dollar makes dollar-denominated gold more attractive to buyers holding other currencies, which is likely contributing to gold's upward trend.

Gold prices rose 0.9% to $4,416.53 an ounce on Monday, from an opening level of $4,376.47.