YEREVAN, August 21. /ARKA/. Gold prices rose on Friday and could finish the third consecutive week of gains amid a weakening dollar and the U.S. Treasury's decision to increase the volume of bond buybacks, Reuters reports.
The spot price of gold at 05:04 GMT increased by 0.4% to $4,537.41 per ounce, after reaching a peak earlier in June. Since the beginning of the week, gold has risen by 3.6%. U.S. gold futures rose by 0.5% to $4,593.90.
The market was supported by the weakening dollar, which makes gold cheaper for holders of other currencies, as well as changes in bond yields.
U.S. Treasury Secretary Scott Bessent stated the possibility of further increasing the volume of bond buybacks. Earlier, the Treasury announced it would double the volume of long-term securities purchases in the next quarter to at least $4 billion per operation.
Meanwhile, two Federal Reserve representatives cautiously commented on the potential impact of changes in Treasury management of government debt on the monetary policy of the U.S. central bank.
According to CME FedWatch, the market assesses the probability of keeping the Fed's rate unchanged next month at 63%, while the probability of an increase is at 37%. High interest rates traditionally reduce the attractiveness of gold, which does not provide interest income.
In the market for other precious metals, silver rose by 1.3% to $68.93 per ounce, platinum by 2% to $1,865.29, and palladium by 0.8% to $1,344.44. All three metals are also heading for weekly gains.
