Gold climbs to $4,537 on weaker dollar

Gold prices rose on Friday, putting the metal on track for a third consecutive weekly gain, according to Mettis Global. Spot gold was up 0.67 per cent at $4,537.42 an ounce at the time of the report. The move was supported by a softer US dollar, which was heading for a weekly decline and makes bullion less expensive for buyers holding other currencies.

CNBC reported that the US Treasury, which announced the change on Wednesday, plans to enlarge its buybacks of longer-maturity bonds in the next quarter and lift the smallest operation to a minimum of $4bn. Two Federal Reserve officials, questioned about how this debt-management shift could affect monetary policy, expressed caution. Thursday's data showed fewer new unemployment benefit claims last week, a sign the job market is holding up despite an unexpected July employment drop.

The CME FedWatch Tool puts the odds of a steady Fed rate next month at 64 per cent, with a hike at 36 per cent. Silver climbed 1.3 per cent to $68.92 an ounce, platinum gained 2.4 per cent to $1,872.64 and palladium rose 1.3 per cent to $1,351.28, all of them also heading for weekly gains. The report added that bullion's direction will mainly depend on the Fed's upcoming decision and on how rate expectations evolve.