Gold hits highest in three months on softer dollar and geopolitical uncertainty
Gold prices reached a three-month high due to a weaker US dollar and rising geopolitical tensions, including trade disputes and conflict in Iran. Investors are increasingly turning to gold as a hedge against global economic and political uncertainty.
Why it matters
Gold's performance is a key indicator of market sentiment regarding global stability and the strength of the US dollar.
Gold prices <a href="https://www.thenationalnews.com/business/energy/2026/08/21/oil-heads-for-weekly-gain-while-gold-and-bitcoin-jump-on-us-treasury-buyback-plans/" target="_blank" rel="" title="https://www.thenationalnews.com/business/energy/2026/08/21/oil-heads-for-weekly-gain-while-gold-and-bitcoin-jump-on-us-treasury-buyback-plans/">hit their highest</a> in about three months on Monday, as a series of factors including a weaker dollar and <a href="https://www.thenationalnews.com/news/mena/2026/08/24/live-iran-us-economic-war/" target="_blank" rel="" title="https://www.thenationalnews.com/news/mena/2026/08/24/live-iran-us-economic-war/">growing geopolitical tension</a> boost the commodity. Spot gold was up 0.66 per cent at $4,646.52 per ounce, as of 11.20am UAE time, adding to gains of more than 5 per cent last week. The dollar is at a multi-month low after the US announced last week that it would increase its bond buyback programme. A weaker US dollar makes gold more affordable for holders of other currencies. "We see the current gold market being shaped by several forces at once rather than one isolated catalyst," said Naeem Aslam, chief investment officer at Zaye Capital Markets.
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