Gold prices jump over 2 percent as dollar weakens
Gold rose 2.5% to $4,587.09 as a weaker dollar and lower oil prices eased interest rate fears. Hopes for a Middle East peace deal supported safe-haven demand.
Gold prices surged by more than 2% on Wednesday, supported by a weakening dollar and a significant decline in energy costs that helped alleviate concerns regarding global inflation and interest rate hikes. Spot prices for the metal climbed 2.5% to $4,587.09 per ounce, while gold futures in the United States for April delivery saw a 4.2% gain to reach $4,586.10.
The retreat of the dollar has made bullion more attractive to investors holding other currencies. Market analysts noted that the easing of dollar-denominated pressure has allowed safe-haven demand to return to the forefront of market sentiment. Christopher Wong, a strategist at OCBC, highlighted that gold's underlying appeal remains intact despite recent fluctuations.
