US gold futures rose 0.6% to $4,596.60.
Gold prices edged higher on Friday and were on track for a third consecutive weekly gain, supported by a weaker dollar and US Treasury’s bond buyback move.Spot gold was up 0.5 per cent at $4,540.18 per ounce by 0254 GMT, after hitting its highest level since early June in the previous session. Prices have climbed 3.6 per cent so far this week. US gold futures rose 0.6 per cent to $4,596.60.“We’ve seen the dollar weakening and that has supported not just gold but all precious metals, along with a big change in yields,” said Brian Lan, managing director of GoldSilver Central.The dollar headed for a weekly loss, making greenback-priced bullion more affordable for buyers overseas. US Treasury Secretary Scott Bessent said he may further increase the government’s repurchases of Treasuries. The Treasury on Wednesday announced that it would double the size of buybacks on longer-dated securities over the next quarter to at least $4 billion per operation. Meanwhile, two Federal Reserve officials expressed caution when asked how the Treasury Department’s debt management changes could affect the US central bank’s monetary policy stance.Gold’s upward trajectory would be determined by what the Fed decides to do next and how those policies impact market rate expectations, Lan added.Data on Thursday showed the number of Americans filing claims for unemployment benefits slipped last week, suggesting that the labor market remains stable despite a surprise drop in employment in July, leaving the Fed in a position to keep its focus on containing inflation.Traders are now pricing in a 64 per cent chance that the Fed will keep rates unchanged next month and a 36 per cent chance of a hike, according to the CME FedWatch Tool.Despite gold being typically seen as an inflation hedge, higher interest rates tend to diminish bullion’s appeal due to its non-yielding characteristic.On the geopolitical front, Bessent said the United States will impose “the toughest sanctions in history” on Iran.Spot silver was up 1.3 per cent to $68.92 per ounce, platinum climbed 2.4 per cent to $1,872.64, while palladium gained 1.3 per cent to $1,351.28. All three metals were headed for weekly gains.Published on August 21, 2026
