Gold Holds Near 3-Month High on US Debt Concerns
Gold trades around $4,600 an ounce, near its highest level since mid-May, as concerns over US debt management and fiscal sustainability persist after Treasury unexpectedly ramped up buybacks of longer-dated government debt.
Gold traded around $4,600 an ounce on Monday, holding near its highest level since mid-May, as concerns over US debt management and fiscal sustainability persisted after the Treasury unexpectedly ramped up buybacks of longer-dated government debt.
The intervention pushed bond yields and the dollar lower, reviving the so-called debasement trade and strengthening demand for gold as an alternative store of value.
Treasury Secretary Scott Bessent has signaled that further buybacks could follow and said the administration plans to soon introduce measures aimed at tackling borrowing costs, which are at their highest levels in years.
Meanwhile, oil prices slipped but remained elevated, which could curb further gains by fueling inflation and dampening expectations for interest-rate cuts.
Markets now await the US announcement on additional sanctions against Iran.
Gold has gained about 13% so far this month.