Gold rallies to 3-month high on weaker dollar, bullish technicals

Gold prices surged to a three-month high on Friday, marking its third consecutive weekly increase, according to wire reports. The precious metal climbed 2.1 percent to $4,612.17 per ounce, briefly reaching $4,620.14, which marked its highest level since May 15. U.S. gold futures followed suit, climbing 2.2 percent to $4,670.60. Over the past week, prices have risen more than 5 percent, with Wednesday registering the biggest single-day gain since early February.

Technical analysts view the metal trading above key moving averages, including the 200-day average of around $4,513, as a positive sign. The primary driver behind the rally appears to be a weaker dollar, with Bart Melek, global head of commodity strategy at TD Securities, attributing the trend to concerns over whether the U.S. Treasury's support plan for bond markets will ultimately succeed. If the current momentum persists, the next target could be the $4,700 level.