Gold Price Rallies Above $4,600 as US Dollar Weakens
The XAU/USD price has surged towards $4,600 as the US Dollar weakened to three-month lows. Gold prices rose sharply on Friday, briefly breaking above $4,600 due to a weaker US Dollar and renewed concerns over US fiscal sustainability.
According to Reuters, gold reached an intraday high of $4,601.29, its strongest level since mid-May. The XAU/USD price was 1.40% higher on the day, with a significant increase of almost 4.9% over five sessions and around 12.5% higher over the past month.
Experts attribute the rally to the US Treasury's expansion of long-dated bond buybacks, which has pulled yields lower and raised questions about Washington's ability to manage pressure at the long end of the curve. Brian Lan, Managing Director at GoldSilver Central, notes that 'We've seen the dollar weakening and that has supported not just gold but all precious metals, along with a big change in yields.'
Alexander Zumpfe of Heraeus Metals Germany sees a supportive structural backdrop for gold's rally. He believes that 'Gold’s milestone rally through 2025 has set the stage for a continuation of its bull trend in 2026', predicting an average price of $4,620 by then.