Spot silver XAG= gained 1.8% to $69.31 per ounce, platinum XPT= climbed 2.6% to $1,875.75, while palladium XPD= rose 1.7% to $1,356.59. All three metals were headed for weekly gains.
Physical demand and geopolitical tensions
The recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady. GOL/AS
On the geopolitical front, Bessent said the United States will impose "the toughest sanctions in history" on Iran.
Dollar weakness, Treasury buybacks and Fed expectations support bullion
"We've seen the dollar weakening and that has supported not just gold but all precious metals, along with a big change in yields," said Brian Lan, managing director of GoldSilver Central.
The dollar headed for a weekly loss, making greenback-priced bullion more affordable for buyers overseas. USD/
U.S. Treasury Secretary Scott Bessent said he may further increase the government's repurchases of Treasuries. This comes after the Treasury on Wednesday announced that it would double the size of buybacks on longer-dated securities over the next quarter to at least $4 billion per operation.
"Attention now turns to whether the move can extend, with upcoming U.S. data and Jackson Hole Symposium (27-29 Aug) likely to shape the next leg in yields and the dollar," said Christopher Wong, precious metals strategist at OCBC.
Meanwhile, 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.
Traders are now pricing in a 67% chance that the Fed will keep rates unchanged next month and a 33% chance of a hike, according to the CME FedWatch Tool. FEDWATCH/
Despite gold typically being seen as an inflation hedge, higher interest rates tend to diminish bullion's appeal due to its non-yielding characteristic.
Gold hits near three-month high on softer dollar and Treasury buyback move
Gold prices hit a near three-month high on Friday, poised for a third straight weekly gain, supported by a softer dollar and the U.S. Treasury's bond buyback move.
Spot gold XAU= climbed 1% to $4,562.86 per ounce by 0752 GMT, hitting its highest since May 29 earlier in the session. Prices have climbed 4.2% so far this week. U.S. gold futures GCcv1 rose 1.1% to $4,620.00.
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