Gold heads for third straight weekly gain above $4,500

Gold traded above $4,500 an ounce on Friday and was on course for a third consecutive weekly gain, as investors turned to safe-haven metals amid heightened volatility across currency and bond markets, while rising oil prices continued to underscore inflationary risks.

The precious metal jumped more than 4% on Wednesday after the US Treasury Department announced plans to at least double its long-term debt buybacks in an effort to contain borrowing costs, driving Treasury yields and the dollar sharply lower.

Gold held on to those gains even after Treasury yields reversed Wednesday’s decline amid concerns that the government’s efforts to rein in long-term borrowing costs may provide only a temporary solution.

Meanwhile, oil prices extended their advance as the US prepares sweeping new economic sanctions against Iran.

Elsewhere, gold remained supported by robust investment demand and continued central bank purchases, particularly from China.