After weeks of trading in a narrow range, gold has now advanced by 2.3% since Thursday on falling Treasuries yields and a weaker dollar, which are both headed for weekly losses. Lower yields boost the appeal of bullion, which doesn’t offer interest. The dollar’s decline helped spur a broad rally in raw materials, with the Bloomberg Commodity Index on track for its best week of 2021.

According to Bloomberg, gold is showing tentative signs of breaking out of a slump following three straight monthly losses. Prices rose above the 50-day moving average during Thursday’s session, a positive signal for traders who follow chart patterns.

On Friday, the precious metal extended gains to the highest since February after Reuters reported that China has given banks permission to import a large amount of bullion to meet domestic demand.

The overall robust performance in commodities this week was “being supported by a surprise drop in US Treasury yields accompanied by a weaker dollar,” said Ole Hansen, head of commodities research at Saxo Bank, said in a Bloomberg note.

Gold, along with crude oil and copper, “broke higher, thereby potentially signaling renewed momentum attracting fresh buying from speculators,” Hansen added.

Federal Reserve Chairman Jerome Powell’s reiteration of his dovish stance on monetary policy also helped bullion this week. That helped offset the impact of improving US and China economic reports, which could otherwise diminish demand for the metal as a haven.

(With files from Bloomberg)

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