Gold surged above $4,600 an ounce on Friday, extending one of its strongest weekly advances this year as a weaker dollar and renewed concerns over U.S. finances pushed investors toward defensive assets.
Spot gold reached $4,620.14, its highest level in three months, and was up more than 5% for the week, according to Reuters. U.S. gold futures climbed above $4,670.
The move extends a recovery that began earlier this month, when a weak U.S. jobs report helped lift gold prices as investors reassessed the outlook for interest rates.
Dollar Weakness Adds Fuel to Gold Rally
The U.S. dollar has fallen nearly 1% this week, making dollar-priced bullion cheaper for overseas buyers. At the same time, concerns over federal borrowing have returned after U.S. debt moved above $40 trillion.
Treasury Secretary Scott Bessent’s decision to expand buybacks of longer-dated government securities briefly eased bond-market pressure but also reinforced debate over the scale of U.S. financing needs.
Gold’s breakout above its 200-day moving average near $4,513 added technical momentum, attracting fresh buying after months of volatility.
Investors Turn More Positive on Gold
Professional investors are also becoming less cautious. Bank of America’s latest fund manager survey showed a net 16% of respondents viewed gold as undervalued, up from 6% in July and the strongest reading since March 2023.
The shift comes even as broader investor positioning remains heavily tilted toward equities, suggesting gold is attracting demand as a portfolio hedge rather than simply benefiting from a broad risk-off move.
Gold’s resurgence also revives its comparison with Bitcoin. Earlier research highlighted how Bitcoin and gold can behave very differently during periods of market stress, despite both being promoted as stores of value.
Bitcoin has nevertheless rallied strongly alongside bullion this week, while major stock indexes have struggled. That divergence has renewed interest in scarce assets as investors weigh fiscal risk, currency weakness and inflation.
Precious metals broadly participated in Friday’s rally. Silver climbed above $69 an ounce, while platinum and palladium also advanced.
Longer-term forecasts remain bullish but far from unanimous. Earlier this year, JPMorgan projected gold could reach $6,300 by year-end, while other banks have warned that stronger rates or easing geopolitical risks could trigger another correction.
A previous gold forecast also highlighted central-bank buying as an important structural source of demand.
