Gold rallies to 3-month high on weaker dollar, bullish technicals
GLD•Other precious metals rise
Elsewhere, spot silver gained 2.1% to $69.52 per ounce, platinum climbed 2.8% to $1,879.79, while palladium rose 0.6% to $1,341.71. All metals are set for a weekly gain.
Options demand and physical markets
"Gold call option demand has risen sharply amid renewed demand for global macro-policy hedges, creating a mechanical price amplifier to both the upside and downside," Goldman Sachs said in a note.
Goldman noted that weaker market conviction around U.S. rate hikes following the Fed's July pause and softer economic data has helped revive speculative interest in COMEX gold and demand for rate-sensitive gold ETFs, with rising and elevated call option demand likely amplifying the move.
On physical demand, the recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady. Poland's central bank slowed gold buying to 7.8 metric tons in July, data showed on Friday.
