Gold prices edged higher on Friday and were on track for a third straight weekly gain, with a weaker US dollar and the US Treasury’s bond buyback plans supporting bullion. RHB Investment Bank Bhd (RHB Research) maintained its long position on COMEX gold, saying the metal could break above US$4,650 and rally towards US$4,900 if the resistance is breached.
Spot gold rose 0.4% to US$4,537.41 an ounce by 0504 GMT, bringing its weekly gain to 3.6%, while US gold futures added 0.5% to US$4,593.90. COMEX gold had closed Thursday at US$4,537.10 after trading between US$4,472.50 and US$4,562.30.
RHB said the latest price action and rising Relative Strength Index indicate that bullish momentum remains intact, while the upward-moving 20-day simple moving average continues to support the technical setup.
The research house recommended retaining the long position initiated at US$4,273.30 on Aug 5, with a stop-loss at US$4,300. It identified US$4,300 as the first support, followed by US$4,100, while resistance stands at US$4,650 and then US$4,900.
Meanwhile, Reuters reported that the weaker dollar was making greenback-priced bullion more affordable for overseas buyers. US Treasury Secretary Scott Bessent also said the government could further increase Treasury buybacks after announcing plans to double purchases of longer-dated securities to at least US$4 billion per operation.
Gold’s next move could also depend on the Federal Reserve’s policy direction, with traders currently pricing a 63% chance of rates being kept unchanged next month.
