Kayonews-Gold prices surged past $4,600 an ounce on Friday, reaching their highest level in more than three months as a weaker U.S. dollar and shifting Federal Reserve expectations boosted demand for the precious metal.
Spot gold reached $4,604.18 per ounce, marking a 1.6% gain during the session. The metal is also heading toward its third consecutive weekly gain, with prices rising roughly 5% this week.
The latest rally comes after gold broke above its 200-day moving average, a technical development that attracted renewed buying interest. Investors are also watching U.S. fiscal policy and the direction of interest rates, two factors that can have a major influence on gold prices.
A weaker U.S. dollar has provided another important boost. When the dollar declines, gold priced in dollars becomes relatively cheaper for international buyers. That can increase demand and support higher bullion prices.
The Federal Reserve is also back at the center of the gold market. Changes in expectations for U.S. interest rates can quickly affect Treasury yields, the dollar and investor appetite for non-yielding assets such as gold. Recent market pricing has reduced expectations of an imminent Fed rate hike, supporting bullion.
U.S. fiscal concerns are adding another layer to the rally. News surrounding Treasury plans to expand buybacks of longer-term securities has raised questions about the dollar and U.S. debt dynamics. Those concerns are encouraging some investors to seek alternative stores of value.
The key question now is whether gold can sustain its momentum after breaking above $4,600. Analysts and traders will closely watch whether the metal can establish support above this psychological level. A sustained move higher could strengthen the bullish technical picture, while a sharp rejection could trigger profit-taking after the recent gains.
Gold’s rally also comes with a warning for investors. The metal remains sensitive to U.S. inflation, Treasury yields and Federal Reserve policy. If rate expectations turn significantly more hawkish, higher yields could increase the opportunity cost of holding gold and trigger a correction.
For now, the broader trend remains constructive. Gold has climbed sharply in August, while silver has also rallied toward $70 an ounce. Reuters reported silver near $69.43, platinum around $1,897 and palladium around $1,342.30 on Friday.
The next major question for investors is whether gold can continue toward the $4,700 and $5,000 levels. Those targets are not guaranteed, but the combination of dollar weakness, monetary-policy uncertainty, fiscal concerns and renewed investor demand means the gold rally remains one of the biggest stories in global markets. (*)
Editor : Fanda Yosephta
