Gold surged past $4,600 an ounce to a fresh three-month high, extending its rally to nearly 5% for the week as sustained dollar weakness continues to fuel demand for the metal.
Spot gold traded between $4,580 and $4,600 on Friday, with futures pushing even further, approaching $4,650. The move builds directly on the dollar weakness triggered earlier in the week by the US Treasury’s decision to double its longer-dated bond buybacks, alongside renewed investor concern over the size of America’s overall debt load.
A weaker dollar has made bullion cheaper for buyers holding other currencies, adding an international demand tailwind on top of the safe-haven flows already supporting the metal. A Bank of America survey found a net 16% of fund managers now view gold as undervalued, the highest reading on that measure since March 2023, suggesting institutional buyers may still have room to add to positions.
On the charts, some analysts point to gold’s breakout above its 200-day moving average as confirmation that the bullish momentum is genuine rather than a short-lived spike, with talk of a run toward $5,000 an ounce if dollar weakness persists. That kind of target remains speculative, but it underscores how quickly sentiment has shifted following this week’s Treasury-driven volatility across bonds and currencies.
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