Gold prices rose by 1.2% as the US dollar weakened, boosting demand for the precious metal. Since gold is priced in dollars, a softer dollar makes it more affordable for buyers using other currencies, often leading to increased global demand.
The rise also comes amid investor caution over economic conditions and expectations surrounding interest rate movements. When uncertainty grows or the dollar declines, many investors turn to gold as a safe-haven asset to protect their wealth.
Market analysts say the latest movement reflects the ongoing tug-of-war between currency fluctuations and broader economic signals. As the dollar slipped, gold benefited, reinforcing its traditional role as a hedge against volatility and inflation concerns.
Overall, the gain underscores how closely gold prices are tied to currency trends and investor sentiment in global financial markets.
