Gold Advances as Dollar Remains Under Pressure Ahead of Week’s Close
Key Takeaways
- •The U.S. Treasury’s decision to double long-term debt buybacks remained the main market driver on Friday.
- •The dollar weakened broadly, with EUR/USD trading above 1.1700 and GBP/USD reaching a six-month high of 1.3660.
- •Euro area and UK PMI data were mixed but had little effect on trading because markets stayed focused on rates and foreign exchange.
- •Gold rose 1.7% to $4,596 and silver gained 2.6% to $69.90 after both metals briefly hit higher intraday levels.
- •Bitcoin climbed 6.6% to $77,502, while Wall Street futures pointed to a modest rebound and European equities were slightly higher.
Markets continued to focus on the U.S. Treasury’s decision earlier this week to double long-term debt buybacks, with the dollar weakening again as Treasury yields stalled after a rebound on Thursday.
In the U.S., the 10-year yield climbed back to 4.70%, while the 30-year yield rose to 5.25% before easing slightly. That has helped sustain the relief trade, with the so-called “Bessent put” still seen as being in place, and it has kept attention on how bond-market moves are shaping cross-asset trading into the weekly close.
The dollar is falling broadly as a result. EUR/USD is testing levels above 1.1700, while GBP/USD reached a fresh six-month high of 1.3660. Elsewhere, USD/JPY is down 0.3% to 158.60, and AUD/USD is up 0.8% to 0.7165 on the day.
Economic data released on Friday included euro area and UK PMI figures. In the euro area, France and Germany both disappointed, but the overall reading was more positive, supported by a stronger performance from the rest of the region. In the UK, PMI data also came in stronger, although it showed that inflation pressures picked up further. The releases had little impact on trading, with markets still dominated by reactions to the Treasury move and the accompanying shift in rates and FX.
Gold appears to be the biggest beneficiary. The metal briefly moved above $4,600 earlier in the session and is up 1.7% at $4,596. Silver also briefly touched $70 and is currently up 2.6% at $69.90. With yields pausing and the dollar softer, precious metals have remained among the most responsive parts of the market.
In other markets, equities are attempting to find a steadier footing to end the week. European indices are slightly higher, while Wall Street futures point to a rebound after Thursday’s setback, with S&P 500 futures up 0.4% and Nasdaq futures up 0.6%.
Cryptocurrencies are also extending gains from earlier in the week. Bitcoin is up 6.6% at $77,502 and remains above $77,000.
Markets
- AUD leads, USD lags on the day
- Gold up 1.7% to $4,596
- WTI crude oil up 0.4% to $87.20
- U.S. 10-year yields down 0.6 bps to 4.692%
- European indices slightly higher; S&P 500 futures up 0.4%
- Bitcoin up 6.6% to $77,502
