Precious Metals Review

“Gold was set to rise ​for a third consecutive week on Friday, scaling an over three-month high and breaching its ‌200-day moving average, driven by a feeble dollar and the U.S. Treasury’s surprise mid-week liquidity support announcement.

Spot gold climbed 1.5% at $4,587.23 per ounce by 1101 GMT, having hit $4,601.29 — its highest since May 15 — earlier in the session. U.S. gold ​futures rose 1.6% to $4,645.00.

Bullion has gained 5% so far this week after its ​biggest one-day rise since early February on Wednesday, but ended lower on ⁠Thursday as bond yields rose following a sell-off.

“Gold surged again after a setback on Thursday ​as long-end Treasury yields climbed following a Bessent interview that failed to quell investor concerns ​about spiralling U.S. debt and fiscal sustainability,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Ole added that investor concerns about the level of U.S. debt and the softer dollar were the overriding drivers ​for the market, combined with fresh technical momentum buying above gold’s key 200-day moving ​average level.

U.S. Treasury Secretary Scott Bessent signaled he could ramp up government buybacks of Treasuries even further, after the department announced on Wednesday it would double the size of its buybacks on ​longer-dated securities.

Two Federal Reserve officials ​expressed caution when asked ⁠how the Treasury Department’s debt management changes could affect the U.S. central bank’s monetary policy stance.

“Bullion bulls may have to wait for ​the latest Fed policy signals out of Jackson Hole in the ​week ahead, before ⁠attempting to reclaim the $5k handle,” said Han Tan, chief market analyst at Bybit.

Gold, a non-yielding asset, loses appeal when rates rise.

The recent rally in prices deterred retail buyers in India, while demand ⁠in top ​consumer China held steady.

Elsewhere, spot silver gained 2% to $69.48 ​per ounce, platinum climbed 2.5% to $1,873.58, while palladium rose 1.2% to $1,349.58.”

“Morgan Stanley sees a path for gold above $5,000 a troy ounce, potentially in 2027 or sooner, after the metal climbed past $4,450. The bank says improving macro conditions are reviving ETF demand, as expectations for Fed hikes fade and the U.S. dollar weakens. Strong central bank buying and firmer physical demand are adding further support. Gold’s resilience despite elevated long-term yields also points to growing investor concern over fiscal risks, including high government debt and potential currency debasement. MS expects the Fed to remain on hold through 2026, but warns that upcoming U.S. inflation data and Fed communication could fuel volatility.”