Gold futures climbed past $4,600 an ounce on Friday, as a weaker U.S. dollar and renewed support from the Treasury market strengthened demand for bullion.

U.S. gold futures rose to approximately $4,648 an ounce, while spot gold traded near $4,591 after touching a three-month high close to $4,601. The advance puts gold on course for a third consecutive weekly gain, with prices up more than 4% for the week.

Dollar and Treasury Moves Lift Bullion

Because bullion is priced and traded globally in U.S. dollars, a softer dollar has made it cheaper for investors holding other currencies, drawing international buyers into the market. Developments in the Treasury market have added a further tailwind.

The U.S. Treasury recently expanded its planned purchases of longer-dated government debt. The move initially pushed long-term yields lower and weakened the dollar, creating more favorable conditions for non-yielding assets such as gold.

Gold has also continued to draw support from concerns surrounding U.S. government debt and fiscal sustainability. That unease extends beyond private investors: central banks, particularly in emerging markets, have been steady gold buyers in recent years as they diversify reserves away from the dollar, a trend documented by the World Gold Council that has added a durable layer of official-sector demand beneath bullion's rallies. Investors have increasingly treated bullion as a hedge against currency and policy risks, keeping prices firm even as some Treasury yields have risen again.

Fed Outlook Becomes the Next Test

The rally now faces a key test from U.S. monetary policy. Investors are watching the Federal Reserve's upcoming Jackson Hole meeting, the central bank's annual symposium in Wyoming that past Fed leaders have used to signal major policy shifts, for signals on interest rates and the broader economic outlook.

Lower interest rates generally support gold by reducing the opportunity cost of holding an asset that pays no interest. Persistent inflation or stronger economic data, however, could keep borrowing costs elevated and restrain further gains.

For now, momentum remains positive. Gold has also moved above its 200-day moving average, reinforcing the bullish technical picture. Traders are closely watching the $4,650 area for indications of whether the rally can extend toward new highs.