Gold climbs to $4,537 on weaker dollar

August 21, 2026 (MLN):  Gold prices moved higher on Friday, keeping the metal on course for a third straight weekly advance as a softer dollar and the U.S. Treasury's decision to expand its bond buyback programme lent support to bullion.

Currently, spot gold is up 0.67% to $4,537.42 an ounce as of [10:05 am] PST, according to data reported by Mettis Global.

The dollar was set for a weekly decline, a move that makes bullion cheaper for holders of other currencies and tends to boost overseas demand.

The U.S. Treasury said on Wednesday it would double the size of buybacks on longer-dated securities over the coming quarter, raising the minimum operation size to at least $4bn, according to CNBC.

Separately, two Federal Reserve officials voiced caution when questioned about how the Treasury's debt-management shift could influence the central bank's monetary policy stance.

Gold's trajectory from here will largely hinge on the Fed's next move and how its decisions shape market rate expectations.

Data released Thursday showed that new claims for unemployment benefits eased last week, pointing to a labour market that remains stable even after a surprise employment drop in July, a combination that leaves the Fed free to keep its attention on inflation control.

Markets are currently pricing in a 64% probability that the Fed will hold rates steady next month, against a 36% chance of a hike, according to the CME FedWatch Tool.

Among other precious metals, spot silver rose 1.3% to $68.92 per ounce, platinum jumped 2.4% to $1,872.64, and palladium added 1.3% to $1,351.28 with all three also on track for weekly gains.

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