Gold was set to rise for a third consecutive week on Friday, scaling a more-than-three-month high and breaching ?its 200-day moving average, ?driven by a feeble dollar and the U.S. Treasury’s surprise mid-week liquidity support announcement.
Spot gold climbed 1.5% to $4,587.23 U.S. an ounce, having hit $4,601.29 — its highest since May ?15 — ?earlier in the session. U.S. gold futures rose 1.6% ?to $4,645.00.
Bullion has gained 5% so far this week after its biggest one-day gain since early February on Wednesday, but ended lower on Thursday as bond yields rose following a selloff.
The metal is now trading above all its ?key moving averages, with the 200-day moving average currently around $4,513.23. Speculators ?who trade on technical signals regard a break above key moving averages as a bullish signal.
U.S. Treasury Secretary Scott Bessent signaled he could ramp up government buybacks of Treasuries even ?further, after the department announced on Wednesday it would double the size of its ?buybacks on longer-dated securities.
Two Federal Reserve officials expressed caution when ?asked how the Treasury Department’s debt management changes could affect the U.S. central bank’s monetary policy stance.
Gold, a non-yielding asset, loses appeal when rates rise. The recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady.
Elsewhere, ?spot silver gained 2% to $69.48 U.S. per ?ounce, platinum climbed 2.5% to $1,873.58 U.S., while palladium rose 1.2% to $1,349.58 U.S.
