Gold hits three-month high as weaker dollar fuels rally
Spot gold climbs 2.4% to US$4,623.94 an ounce after breaking its 200-day moving average, with Treasury buyback plans weighing on the dollar
Gold climbed to its highest level in more than three months on Friday (August 21, 2026), supported by a weaker US dollar and a technical breakout that put the metal on course for a third consecutive weekly gain.
Spot gold rose 2.4% to US$4,623.94 an ounce by 1.41pm US Eastern time, or 5.41pm GMT, after touching US$4,631.99 — its highest price since May 15.
US gold futures settled 2.4% higher at US$4,680.60 an ounce.
Bullion gained more than 5% during the week, including its strongest one-day advance since early February on Wednesday.
Technical breakout puts US$4,700 in view
Gold remained above all its main moving averages after breaking through the closely watched 200-day moving average near US$4,513. Technical analysts generally regard a move above that level as a bullish signal.
Bart Melek, global head of commodity strategy at TD Securities, identified the technical breakout and the weaker dollar as the principal drivers of the advance.
“The next step is US$4,700 if this momentum continues,” Melek said.
The dollar traded near its lowest level since mid-May as investors questioned whether US Treasury measures intended to calm the bond market could weaken confidence in the currency.
A softer dollar generally makes dollar-denominated gold less expensive for buyers using other currencies.
Treasury buybacks weigh on dollar sentiment
US Treasury Secretary Scott Bessent said on Thursday that the government could expand its Treasury bond-buyback programme further.
The Treasury had announced plans a day earlier to double its repurchases of longer-dated securities.
Goldman Sachs said demand for gold call options had risen sharply as investors returned to assets used to hedge global macroeconomic policy risks. The bank said the options activity could amplify price movements in both directions.
Reduced conviction that the US Federal Reserve will raise interest rates again after pausing in July, combined with softer economic data, has also revived speculative demand for COMEX gold futures and interest-rate-sensitive gold exchange-traded funds.
Persistently high demand for call options could add further momentum to market movements, Goldman Sachs said.
Higher prices curb physical demand in India
The latest price surge discouraged retail gold buyers in India, while physical demand in China, the world’s largest gold-consuming market, remained steady.
Poland’s central bank slowed its gold purchases to 7.8 metric tonnes in July, according to data released on Friday.
Other precious metals also advanced:
Spot silver gained 2.3% to US$69.62 an ounce.
Platinum climbed 2.8% to US$1,878.58 an ounce.
Palladium rose 0.8% to US$1,344.96 an ounce.
Gold, silver, platinum and palladium were all heading for weekly gains.
