Gold climbed to a three-month high on Friday, extending its winning streak to a third consecutive weekly increase, as a softer U.S. dollar — pressured by Treasury buyback strategies — lent support to the precious metal.

Analysts characterized the advance as a bullish signal, citing a notable break above significant moving averages. In technical analysis, moving averages smooth price data over set periods, and a decisive move above widely watched averages is commonly read as evidence of strengthening upward momentum.

Investor appetite for gold and related exchange-traded funds (ETFs) continued to build during the rally. Bullion-backed ETFs allow investors to gain exposure to gold without taking physical delivery of the metal, and shifts in their holdings are widely tracked as a real-time gauge of investor positioning. Among other precious metals, silver and platinum also recorded substantial gains in the session.

A weaker dollar generally works in gold's favor: the metal is priced in U.S. dollars on global markets, so a decline in the currency lowers the cost of bullion for holders of other currencies. The dollar's softness was linked to U.S. Treasury buyback strategies — programs in which the Treasury repurchases outstanding securities, affecting liquidity conditions in the Treasury market.

Gold is widely regarded as a store of value and a hedge against currency debasement and inflation, and its price is closely watched as a barometer of broader market conditions. Beyond financial investors, central banks have been persistent net purchasers of gold in recent years, according to World Gold Council data, adding a structural layer of demand that runs alongside ETF flows. Because bullion itself generates no interest income, market commentary also weighs the metal against prevailing interest-rate expectations. Silver and platinum, which carry both precious-metal and industrial demand components, frequently trade in sympathy with gold. For those following the move, the focal points ahead are typically fresh U.S. inflation readings and Federal Reserve policy decisions, both of which shape the dollar and the rate backdrop against which non-yielding bullion is assessed.

Source: Economic Times Markets