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

Gold climbed to a more than three-month high on Friday, on track for its third straight weekly gain, aided by a break above key technical levels as the U.S. Treasury’s buyback support plan dragged on the dollar. Spot gold climbed 2.1 percent to $4,612.17 per ounce by 12:29 p.m. EDT (1629 GMT), earlier touching $4,620.14 — its highest since May 15. U.S. gold futures rose 2.2 percent to $4,670.60. Prices have gained over 5 percent so far this week, including the biggest one-day rise since early February on Wednesday. The metal is also trading above all key moving averages, having broken above the closely watched 200-day moving average of around $4,513, a move technical analysts typically view as bullish. “A big factor, of course, is technical… next step is $4,700 if this momentum continues, but also I think it’s been very much driven by a drop in the U.S. dollar,” said Bart Melek, global head of commodity strategy at TD Securities. The dollar languished near its lowest level since mid-May as investors questioned whether the U.S. Treasury’s efforts to calm the bond markets might end up u

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