Gold Hits Three-Month High as Weaker Dollar and Bullish Technicals Drive Rally
Gold prices surged to a three-month high on Friday, marking its third consecutive weekly gain. Spot gold rose by 1.6% to $4,590.51 per ounce, with futures reaching $4,647.00, representing the highest level since May 15. The metal's rally is attributed to both technical and fundamental factors.
Bart Melek, global head of commodity strategy at TD Securities, attributes the gold price surge to a drop in the US dollar, which has weakened to its lowest level since mid-May. Investors are questioning whether the US Treasury's efforts to calm bond markets might undermine confidence in the currency.
The technical analysis also indicates that gold is trading above all key moving averages, having broken through the closely watched 200-day moving average of around $4,513. This move is typically viewed as bullish by analysts.