Gold Nears $4,600 an Ounce, Eyeing Third Consecutive Weekly Gain
Gold prices neared the $4,600 per ounce mark during Friday's trading, heading for a third consecutive weekly gain, supported by a weaker U.S. dollar and the U.S. Treasury's move to buy back Treasury bonds.
Spot gold reached $4,600.385 per ounce, recording its highest level since mid-May 2026. Meanwhile, U.S. gold futures rose 1.1% to $4,620 per ounce.
Dollar Supports Gold
Brian Lan, Managing Director at GoldSilver Central, stated that the dollar's depreciation provided support for gold and all precious metals, coinciding with a significant shift in bond yields.
The dollar is on track to post a weekly loss, making greenback-priced commodities cheaper for holders of other currencies and thereby boosting demand for gold.
U.S. Treasury Move
U.S. Treasury Secretary Scott Bessent said on Thursday that the government might increase its Treasury bond purchases, a move that bolstered investor interest in gold.
On Wednesday, the U.S. Treasury Department announced that it will double the size of its long-term securities buyback operations over the next quarter to at least $4 billion per operation.
Market Movements
Gold is benefiting from the declining dollar and bond market movements, at a time when investors are closely monitoring the trajectory of U.S. fiscal policy and its broader implications for global markets.
Gold's approach toward the $4,600 per ounce level reinforces the precious metal's upward momentum, having earlier in the session hit its highest level since May 29.