Gold prices rose to their strongest level in more than four months on Wednesday, supported by a weaker U.S. dollar languishing at three-year lows.
Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Comex gold futures rose to a session high of $1,346.80 a troy ounce, a level not seen since Sept. 8. It was last at $1,345.80 by 3:25AM ET (0825GMT), up around $9.00, or 0.7%, from the last session’s closing price, when it rose 0.3%.
Meanwhile, silver futures jumped 22.0 cents, or 1.3%, to $17.13 a troy ounce.
The dollar index, which gauges the U.S. currency against a basket of six major rivals, wallowed at more than three-year lows. It was last at 89.67, after dropping as low as 89.62 earlier, its deepest nadir since December 2014.
The greenback has been on the backfoot since the start of the year on rising expectations that central banks in Japan and the euro zone could pare their monetary stimulus.
Investors are looking ahead to the European Central Bank’s meeting on Thursday for further details on when the central bank plans to end its massive economic stimulus program.
In other metals action, palladium prices inched up 0.8% to $1,092.40 an ounce.
Sister metal platinum meanwhile gained 0.5% at $1,012.50 an ounce.
March copper tacked on 0.9% to $3.139 a pound.
