Gold heads for third weekly gain as dollar weakens and US Treasury buybacks rise

ERBIL, Iraq — Gold prices held steady on Friday and were on track for a third consecutive weekly advance, supported by a softer dollar and efforts by the U.S. Treasury to push down long-term bond yields. Spot gold traded at $4,514.23 per ounce after touching its highest level since early June in the previous session, bringing weekly gains to 3.2%. U.S. gold futures were little changed at $4,571.20. The dollar's weekly decline made dollar-denominated commodities more affordable for holders of other currencies. Treasury Secretary Scott Bessent said on Thursday that the department could increase buyback operations on Treasury bonds, a day after announcing it would double repurchase volumes of long-dated securities to at least $4 billion per operation next quarter. Federal Reserve officials have remained cautious about how much the Treasury's debt management changes could affect monetary policy options. Data released earlier showed a decline in weekly jobless claims, signaling continued stability in the U.S. labor market. According to the CME FedWatch tool, markets priced in a 64% probability that interest rates would be left unchanged in September and a 36% chance of an increase. In other precious metals, spot silver stood at $68.03, platinum gained 1.1% to $1,846.29, and palladium traded at $1,333.11.