Gold reaches 3-month high amid dollar weakness

Gold prices have risen significantly in both the domestic and global markets, with the ounce reaching its highest level in three months and surpassing $4,600. This increase is supported by a decline in the dollar and growing concerns over debt and fiscal policies in the United States. The decline of the dollar to its lowest levels in three months, along with the U.S. Treasury Department expanding its buyback operations for long-term bonds, has led to falling bond yields and increased gold's attractiveness as a safe haven. From a technical perspective, gold has managed to break through the 200-day moving average, boosting the prospects for the continuation of an upward trend—especially amidst ongoing geopolitical tensions and rising oil prices. Despite these gains, the local gold price remains below the global rate due to weak domestic demand and the influence of supply and demand factors, as the upcoming holiday in the gold market is expected to slow sales. The future of gold prices is closely tied to the results of the Federal Reserve meeting and U.S. monetary policy practices, with expectations of further gains if the dollar continues to weaken and concerns over U.S. debt increase.

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