Gold hits three-month high as dollar weakens, US Treasury moves

Gold prices are on track for a third straight weekly gain today, reaching their highest level in more than three months, supported by a weaker dollar and the US Treasury's unexpected move to repurchase government bonds.

Spot gold rose 1.5 percent to $4,587.23 per ounce after hitting $4,601.29 earlier in the session, its highest since May 15. US gold futures climbed 1.6 percent to $4,645.

According to Reuters, Ole Hansen, an analyst at Saxo Bank, said gold rebounded after Thursday's decline, and that higher long-term US Treasury yields following an interview with Treasury Secretary Scott Besant did not ease investor concerns about rising US debt and fiscal sustainability.

He added, as reported by Reuters, that investor worries over US debt levels and the weakening dollar were the main market drivers, along with renewed technical momentum.

The recent price surge has led individual buyers in India to hold back, while demand in China, the world's largest gold consumer, remained steady.

Among other precious metals, spot silver rose 2 percent to $69.48 per ounce. Platinum gained 2.5 percent to $1,873.58, and palladium was up 1.2 percent at $1,349.58.