Gold Soars to Three-Month High on Weaker Dollar and Bullish Technicals
Gold prices surged to a three-month high on Friday, buoyed by a weaker US dollar and bullish technical indicators. Spot gold rose 2.1 percent to $4,612.17 per ounce, reaching its highest level since May 15 at $4,620.14.
The rally comes as the US Treasury's buyback support plan dragged on the dollar, which languished near its lowest level since mid-May. Analysts cited a break above the 200-day moving average and stronger call option demand as additional support for gold's rise.
TD Securities' Bart Melek noted that technical factors were a key driver of gold's momentum, with the next target being $4,700 if this trend continues. However, Goldman Sachs attributed the move to weaker market conviction around US rate hikes following the Fed's July pause and softer economic data.