Spot gold edged higher during early‑Friday ASIan trade and hit a nearly three‑month high at $4543.88 per ounce. Bullion has climbed roughly 3.6% this week and is on track to register its third straight weekly advance.

A weekly decline in the US Dollar Index lowers holding costs for dollar‑denominated gold among overseas buyers. Meanwhile, the US Treasury’s announcement to scale up buy‑backs of long‑dated Treasury bonds to depress long‑end yields has delivered extra support to gold prices. Treasury Secretary Scott Bessent has hinted that further expansion of buy‑back operations is possible.

US initial jobless claims fell last week, pointing to labour‑market resilience following July’s unexpected soft employment print. Markets price a 64% probability that the Federal Reserve keeps interest rates unchanged in September and a 36% chance of a rate hike. Although higher interest rates erode the appeal of non‑yielding gold, concerns over the US dollar and bond markets remain the dominant driver for now.

On the geopolitical front, Treasury Secretary Scott Bessent stated the United States will impose “the harshest‑ever sanctions” against Iran. He argued such measures may reduce the need for a new large‑scale military campaign, yet related risks continue to offer safe‑haven support for gold.