On the 6th, international gold prices surged back above $3,400 per ounce, approaching the all-time high set last month. According to Reuters, as of 1:56 p.m. Eastern Time, the spot gold price rose 2.4% from the previous session to $3,413.29 per ounce.
This marks the highest level in two weeks since gold touched $3,500 per ounce, setting a record high on the 22nd of last month. At the New York Mercantile Exchange, the closing price of near-month gold futures jumped 3% to $3,422.8 per ounce.
Amid a weakening U.S. dollar, gold prices, which are denominated in dollars, are gaining upward momentum.
The dollar index, which measures the value of the dollar against a basket of six major currencies, fell 0.61% to 99.22 near the close of the New York stock market.
With the U.S. Federal Reserve (Fed) set to announce its interest rate decision on the 7th, markets are closely watching whether Fed Chair Jerome Powell will shift his stance on rate cuts. If Powell leans toward a dovish (monetary easing) position, gold prices could gain further momentum.
Adrian Ash, research director at BullionVault, stated, “The recent gold price rally is being driven by a surge in gold investments and sustained gold purchases by central banks aiming to reduce exposure to U.S. dollar assets.”