Gold Prices Surge Amid Weak Dollar, Geopolitical Tensions

The main reason for the surge in gold prices is the weak US dollar. Moderate inflation data of the past week is also one of the reasons. Soft employment and retail sales data are also putting pressure on the dollar. All these factors have increased the demand for precious metals. Praveen Singh, head of commodities at Mirae Asset Sharekhan, said that spot gold was trading 0.5% higher at US $4,398 per ounce. Weakness in the dollar and limited oil prices are expected to keep it positive. The geopolitical backdrop is also in the spotlight. US President Donald Trump is preparing to impose further economic sanctions on Iran. There are 2,200 sanctions already in place since 2018, including the continued blockade of Tehran's ports. The 60-day US-Iran ceasefire agreement is due to expire on Monday. However, this deadline is not fixed and its relevance is reduced after recent developments, said Praveen Trivedi, vice-president of commodity research at JAK Securities.