Gold price is set for a third consecutive weekly gain, supported by a weaker US dollar and the Treasury bond repurchase program.

1. During the early Asian session on Friday, spot gold edged up, once hitting a nearly three-month high of $4,543.88. This week, gold prices have cumulatively increased by about 3.6%, likely to record a weekly gain for the third consecutive week.2. The US dollar weakened on a weekly basis, lowering the holding costs of dollar-denominated gold for overseas buyers. Meanwhile, the US Treasury announced it will expand long-term bond repurchases to drive down long-end yields, providing additional support for gold prices. Treasury Secretary Bessent hinted at the possibility of further increasing the scale of repurchases.3. Last week, US initial jobless claims declined, indicating resilience in the labor market after the unexpected decline in July employment. The market now assigns a 64% probability that the Federal Reserve will keep rates unchanged in September, and a 36% chance of a rate hike. Although rising rates reduce the appeal of the non-yielding asset gold, current concerns over the US dollar and bond market remain dominant.4. On the geopolitical front, US Treasury Secretary Bessent stated that the US will impose “the most severe sanctions in history” against Iran, and thinks this move may reduce the need for launching another large-scale military action. However, related risks continue to provide safe-haven support for gold.