Gold Reaches Three-Month High Amid Weaker Dollar and Treasury Support
Gold prices have risen to a three-month high after the US dollar weakened and the Treasury Department announced liquidity support. According to Reuters, spot gold rose by 1.5% to $4,587.23 per ounce on Friday. This marks its third consecutive weekly gain, reaching levels not seen since May 15.
Investors' concerns about the rapid growth of US government debt and fiscal sustainability are driving the market. Ole Hansen, head of commodity strategy at Saxo Bank, noted that long-term Treasury yields rose following an interview with US Treasury Secretary Scott Bessent. This failed to dispel investors' concerns, causing gold to surge again.
The metal is now trading above its 200-day moving average, a key technical indicator. Speculators view this as a bullish signal, indicating a potential increase in demand for gold. The spot price of silver also rose by 2% to $69.48 per ounce, while platinum and palladium gained 2.5% and 1.2%, respectively.