Gold Rises, Heading for Best Week in a Month and a Half

Gold prices rose today, heading for their best weekly performance in more than a month, driven by a weaker dollar and rising concerns about the US fiscal situation, which boosted safe-haven demand.

Spot gold rose 1.1% to $3,329.69 per ounce by 06:54 GMT, up about 4% since the beginning of the week, on track for its best weekly performance since April 7. U.S. gold futures also rose 1.1% to $3,329.80, according to Reuters.

The dollar, on the other hand, has fallen more than 1% since the beginning of the week and is heading for its worst weekly performance since early April, making dollar-denominated gold less expensive for holders of other currencies.