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Gold climbed to a more than three-month high on Friday as it posted its third consecutive weekly gain, with the rally fueled by a softer U.S. dollar and technical buying that pushed the metal above key averages, The Economic Times reported. Spot gold advanced 1.6 percent to $4,590.51 per ounce by mid-morning in New York, having touched $4,604.18 earlier for its highest level since mid-May. U.S. gold futures gained 1.7 percent to $4,647. The move capped a 5 percent advance for the week that included the largest one-day increase since February.
The U.S. Treasury’s plan to ramp up bond buybacks helped keep longer-term yields in check and weighed on the dollar, which traded near its lowest level since mid-May, according to the report. This dynamic made gold more attractive to international buyers while expectations for steady Federal Reserve policy limited the appeal of interest-bearing assets. A PwC analysis of global investment trends has shown that such periods of dollar weakness often coincide with inflows into precious metals as investors diversify portfolios.
Technical factors played a significant role in the advance, with gold breaking above its 200-day moving average near $4,513 and trading above all major moving averages, The Economic Times data shows. Bart Melek, global head of commodity strategy at TD Securities, said a big factor is technical with the next target at $4,700 if momentum holds but added that the drop in the U.S. dollar has been a major driver. The break above the long-term average is typically seen as a bullish signal by market technicians.
The World Gold Council has projected that central bank buying will remain a key pillar for gold demand in 2026 even if prices consolidate in the near term following last year’s record run. Gold surged more than 60 percent in 2025 on the back of robust purchases by monetary authorities and investor flows into exchange-traded funds. Jefferies strategists and investor John Paulson have both indicated that current levels offer a buying opportunity for those looking to add to positions ahead of further gains.
Market participants will watch upcoming economic data for further clues on the interest rate outlook as any signals of easing could provide additional lift to bullion prices, according to analysts at TD Securities. The metal’s performance this week comes as broader commodity markets reflected shifting views on global growth and monetary policy. Central bank gold reserves have expanded steadily over the past 18 months with several emerging market institutions leading the accumulation, World Gold Council statistics indicate.
