Gold prices climbed this week, with US futures settling at $4,680.60 per ounce and spot gold reaching $4,623.94, as a weaker dollar and central bank demand supported the market.
Spot gold gained 2.4% to $4,623.94 an ounce, while US gold futures also rose 2.4%. Institutional demand remained a major driver. World Gold Council data showed global central-bank net purchases continuing at more than 1,000 tonnes annually.
Investor sentiment also strengthened. The Bank of America Global Fund Manager Survey showed a net 16% of fund managers viewed gold as undervalued, up from 6% in July and the highest level cited since March 2023.
The demand for the precious metal is driven by concerns over the US fiscal position after federal debt surpassed $40 trillion.
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Risks to further gains remain, according to the report. Higher oil prices, persistent inflation and stronger bond yields could weigh on gold if they keep monetary conditions tighter.
Upcoming US economic data, including second-quarter GDP estimates and July personal consumption expenditures inflation figures, could provide further direction for precious-metal markets.