Gold tops $4,650 as bond-market debasement trade revives
Gold rises above $4,650/oz, hitting the highest level in more than three months, after US long-dated bond buybacks revive the “debasement trade.”
Gold climbed above $4,650 an ounce on Tuesday, reaching its highest level in more than three months as US government interventions in the bond market revived the so-called debasement trade that fueled gold’s 65% rally in 2025.
The US Treasury Department announced an expansion of its buyback program for long-dated government debt last week in an effort to contain rising borrowing costs, with Secretary Scott Bessent saying he is prepared to increase the buybacks further while also flagging an upcoming longer-term fiscal plan.
However, markets speculated that the measures may offer only a temporary solution, while renewing concerns over the risks of a US debt crisis, persistent inflation and dollar weakness.
Gold-backed exchange-traded funds have also recorded increased inflows in recent weeks, signaling broader market participation and strengthening investment demand.