New Delhi: Gold prices registered a strong weekly advance of more than 5 per cent, supported by a weakening US dollar and growing investor interest in bullion as a hedge against economic and financial uncertainty. Spot gold climbed to around $4,624 per ounce on Friday, touching its highest level in more than three months and marking the precious metal’s third consecutive weekly gain.

The rally gathered pace after the US dollar came under pressure following the Treasury Department’s plans to expand purchases of longer-dated government bonds. The move raised questions among investors about the outlook for US debt and the currency, prompting greater demand for alternative stores of value such as gold. A weaker dollar also makes gold cheaper for buyers holding other currencies, further supporting international demand.

Gold’s latest surge has also been reinforced by technical momentum. The metal moved above its 200-day moving average, a level closely watched by traders, strengthening expectations of further gains. Analysts have identified the $4,700 region as an important potential target if the upward momentum continues, although prices remain sensitive to changes in US monetary policy, bond yields and currency movements.

The rally has extended beyond gold, with other precious metals also recording gains during the week. Silver, platinum and palladium all moved higher, reflecting broader demand for metals amid currency and macroeconomic uncertainty. While physical gold demand in India remained relatively subdued because of elevated prices, stable demand in China and continued financial-market buying have helped sustain the international bullion rally.