Muscat: Spot gold rose 2.2 per cent to $5,044.74 an ounce, following a sharp 5.9 per cent jump in the previous session, its biggest daily gain since November 2008. The precious metal had touched a record high of $5,594.82 last Thursday, underlining the strength of the ongoing rally.
US gold futures for April delivery also advanced, climbing 2.7 per cent to $5,067.0 an ounce.
The surge comes as the US dollar weakened against most major currencies, with the exception of the yen, after traders locked in recent gains supported by upbeat US economic data. Markets are increasingly betting that the Federal Reserve may be less aggressive in easing monetary policy, a factor that has added volatility to currency markets.
Other precious metals also posted solid gains. Silver rose 2.1 per cent in spot trading to $86.92 an ounce, after hitting a record high of $121.64 last Thursday. Platinum gained 2.3 per cent to $2,260.50 an ounce, having reached an all-time peak of $2,918.80 on January 26. Palladium climbed nearly 3 per cent to $1,782.85 an ounce.
Gold prices surged over 2% as the US dollar weakened, marking the best rally since 2008. Spot gold rose to $5,044.74 an ounce, following a significant jump in the previous session. The rally is fueled by expectations of a less aggressive Federal Reserve policy, adding volatility to currency markets and boosting other precious metals like silver, platinum, and palladium.