Gold Soars Above $4,600 Amid Dollar Weakness and US Debt Concerns

Gold prices ended last week at $4,603 per ounce, marking their third consecutive weekly gain and rising about 5 percent from the previous week's close of $4,377. The surge in gold was driven by continued weakness in the US dollar and stronger demand for the precious metal as a hedge against economic, financial, and geopolitical risks.

The US Treasury Department's announcement to expand its buyback operations for long-term government debt also contributed to gold's gains. Each operation will rise to at least $4 billion, supporting liquidity in the long-term bond market and reducing disruptions from higher borrowing costs.

Despite a sharp decline in bond yields following the announcement, gold continued to advance, suggesting that demand is being driven not only by interest rates and bond yields but also by concerns over US debt, fiscal policy, and dollar weakness. Geopolitical risks, including tensions involving Iran and the Strait of Hormuz, remained among the main factors influencing markets.

Dar Al-Sabaek Company expects gold's performance this week to remain closely linked to movements in the US dollar, Treasury yields, interest-rate expectations, and statements by Federal Reserve officials. The company identified $4,700 as an important technical target after gold moved above its 200-day moving average and maintained strong upward momentum.

The market also recorded stronger demand for gold call options amid dollar weakness and growing concerns over US fiscal policy, further strengthening upward momentum. However, a break below the $4,600 level could trigger a correction toward $4,550 and then $4,513, considered a significant technical support level near the 200-day moving average.