Precious-Gold on track for third weekly gain after US Treasury move
GLD•Other precious metals also gain
Spot silver XAG= was up 1.3% to $68.92 per ounce, platinum XPT= climbed 2.4% to $1,872.64, while palladium XPD= gained 1.3% to $1,351.28. All three metals were headed for weekly gains.
On the geopolitical front, Bessent said the United States will impose "the toughest sanctions in history" on Iran.
Gold edges higher on weaker dollar and Treasury buyback move
Gold prices edged higher on Friday and were on track for a third consecutive weekly gain, supported by a weaker dollar and U.S. Treasury's bond buyback move.
Spot gold XAU= was up 0.5% at $4,540.18 per ounce by 0254 GMT, after hitting its highest level since early June in the previous session. Prices have climbed 3.6% so far this week. U.S. gold futures GCcv1 rose 0.6% to $4,596.60.
"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.
U.S. Treasury Secretary Scott Bessent said he may further increase the government's repurchases of Treasuries. 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.
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.
Gold's upward trajectory would be determined by what the Fed decides to do next and how those policies impact market rate expectations, Lan added.
Data on Thursday showed the number of Americans filing claims for unemployment benefits slipped last week, suggesting that the labor market remains stable despite a surprise drop in employment in July, leaving the Fed in a position to keep its focus on containing inflation.
