Gold rallies to 3-month high on weaker dollar, bullish technicals
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Spot gold climbed 1.6% to $4,590.51 per ounce by 10:19 a.m. EDT (1419 GMT), earlier touching $4,604.18 - its highest since May 15. U.S. gold futures rose 1.7% to $4,647.00. Prices have gained about 5% so far this week, including the biggest one-day rise since early February on Wednesday. The metal is also trading above all key moving averages, having broken above the closely watched 200-day moving average of around $4,513, a move technical analysts typically view as bullish. "A big factor, of course, is technical... next step is $4,700 if this momentum continues, but also I think it's been very much driven by a drop in the U.S. dollar," said Bart Melek, global head of commodity strategy at TD Securities. The dollar languished near its lowest level since mid-May as investors questioned whether the U.S. Treasury's efforts to calm the bond markets might end up undermining confidence in the currency. [USD/] U.S. Treasury Secretary Scott Bessent on Thursday said the government could expand Treasury buybacks further, a day after the department unveiled plans to double buybacks of longer-dated securities. "Gold call option demand has risen sharply amid renewed demand for global macro-policy hedges, creating a mechanical price amplifier to both the upside and downside," Goldman Sachs said in a note. Goldman noted that weaker market conviction around U.S. rate hikes following the Fed's July pause and softer economic data has helped revive speculative interest in COMEX gold and demand for rate-sensitive gold ETFs, with rising and elevated call option demand likely amplifying the move. [GOL/ETF] [CFTC/] On physical demand, the recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady. [GOL/AS] Poland's central bank slowed gold buying to 7.8 metric tons in July, data showed on Friday. Elsewhere, spot silver gained nearly 2% to $69.43 per ounce, platinum climbed 3.8% to $1,897.36, while palladium rose 0.6% to $1,342.30. All metals are set for a weekly gain. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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