Gold futures climbed above $4,600 an ounce on Friday as a weaker U.S. dollar and renewed support from the Treasury market strengthened demand for bullion.
U.S. gold futures rose to about $4,648 an ounce, while spot gold reached roughly $4,591 after touching a three-month high near $4,601. The advance puts gold on track for a third straight weekly gain, with prices up more than 4% this week.
Dollar and Treasury Moves Lift Gold
The softer dollar has helped gold attract international buyers because bullion becomes cheaper for investors holding other currencies. Treasury market developments have added another tailwind.
The U.S. Treasury recently expanded its planned purchases of longer-dated government debt. The move initially pushed long-term yields lower and weakened the dollar, creating more favorable conditions for non-yielding assets such as gold.
Gold also continues to benefit from concerns about U.S. government debt and fiscal sustainability. Investors have increasingly viewed bullion as a hedge against currency and policy risks, helping prices remain strong even as some Treasury yields have moved higher again.
Fed Outlook Becomes the Next Test
The rally now faces an important test from U.S. monetary policy. Investors are watching the Federal Reserve’s upcoming Jackson Hole meeting for clues about interest rates and the broader economic outlook.
Lower interest rates generally support gold by reducing the opportunity cost of holding an asset that does not pay interest. However, persistent inflation or stronger economic data could keep borrowing costs elevated and limit further gains.
For now, momentum remains firmly positive. Gold has also moved above its 200-day moving average, reinforcing the bullish technical picture. Traders will closely watch the $4,650 area for signs of whether the rally can extend toward new highs.
