Gold surged past $4,600 per ounce on Friday, hitting a three-month high and posting a weekly gain of nearly 5 percent. This rally is driven by a weaker dollar, renewed concerns over American debt, and the Treasury’s decision to double long-term bond buybacks to stabilize a struggling bond market. Bank of America’s latest survey shows 16 percent of fund managers now view gold as undervalued, the highest reading since March 2023, while central bank purchases hit a quarterly record in the second quarter. Some analysts are targeting $5,000 if dollar weakness persists, though others caution against risks from rising oil prices and sticky inflation.
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