A surge in Asian buying and short covering propelled gold to $4257, its highest level in six weeks amid weak dollar signals.
Gold prices surged $180 to $4257, marking a six-week high, driven by a wave of buying in Asia and potential short covering. The rally followed weeks of consolidation near $4000, where strong hands emerged to support prices after a pullback from March’s $5400 peak.
The metal had tested $4000 multiple times but held firm, forming higher highs since June 30. Analysts noted that Asian demand, a key driver of prior rallies, may have triggered the move, though the exact catalyst remains unclear.
Broader factors include a weaker dollar policy signaled by U.S. currency devaluation against the yen, reinforcing expectations of a softer greenback. Technical momentum sustained the rally as prices broke key resistance levels.