Gold Blazes to Three-Month High as Dollar Weakens and Treasury Buybacks Fuel Volatility

Gold prices surged to a three-month high of $4,600 in Friday's US session before easing to around $4,580.

The metal is up about 13% this month, driven by a combination of factors including the US Treasury's decision to double liquidity-support buybacks for longer-dated government securities and a weakening dollar.

Central-bank buying and stronger inflows into gold ETFs have also kept demand supported, despite elevated Treasury yields raising the opportunity cost of non-yielding assets.

The Federal Reserve under Chairman Kevin Warsh has given less weight to forward guidance, while recent US jobs and inflation figures have lowered the odds of a rate rise at the next meeting.