Gold hits three-month high as weaker dollar boosts rally
Gold prices climbed to a three-month high on Friday, extending gains for a third consecutive week as a softer US dollar and positive technical signals attracted investors.
Gold Market
Gold prices climbed to a three-month high on Friday, extending gains for a third consecutive week as a softer US dollar and positive technical signals attracted investors.
Spot gold rose 0.5% to $4,540.18 on Friday and has gained 3.6% this week, helped by a softer dollar and Treasury buyback plans.
Shares of gold loan lenders Muthoot Finance, Manappuram Finance, and IIFL Finance rose up to 7% in two sessions after gold prices crossed Rs 1.6 lakh per 10 grams on the MCX.
Gold futures on the MCX climbed ₹1,432 to ₹1.60 lakh per 10 grams, driven by fresh speculative positions and firm physical demand. The October contract traded at ₹1,60,857.
Gold gained nearly Rs 6,500 per 10 grams and silver surged Rs 13,000 per kg over three consecutive sessions on the MCX, supported by a weaker US dollar and lower Treasury yield expectations.
Gold is set for its third consecutive weekly gain after the US Treasury's unexpected buyback of long-dated debt highlighted concerns over government borrowing costs. Bullion traded around $4,530 an ounce.
Gold edged lower on Thursday as US Treasury yields trimmed earlier losses and the dollar firmed, pulling XAU/USD back to $4,509 from a daily high of $4,540.
Gold rose 4.35% on 19 August, its biggest daily gain since February. The rally reflects traders pricing in US dollar debasement risk, not lower bond yields.
Gold declined on Thursday as investors locked in profits after the metal hit a two-month high. Analysts suggest the pullback is a consolidation within a broader uptrend, with key support at $4,400.