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Gold pushes near $4,600 as Fed uncertainty and weaker USD lift demand
The metal is up about 13% for the month after briefly topping $4,600, its highest level since May 15.
Gold (XAU/USD) is extending its rally for a third straight week, trading near $4,590 after a brief move above $4,600, the highest level since May 15, according to FXStreet. The advance has lifted gold by around 13% so far this month.
FXStreet attributes the move to heightened macro uncertainty, alongside a softer tone for the US dollar. The US Dollar Index (DXY) is around 98.65 near three-month lows, while concerns over rising government debt, large budget deficits, and persistent inflation are eroding confidence in US assets.
A key catalyst this week was the US Treasury’s decision to double its liquidity-support buybacks for longer-dated government securities to at least $4 billion per operation. While long-term Treasury yields initially fell on the news, they have since recovered most of their losses, leaving gold’s rise intact.
FXStreet also points to uncertainty around the Federal Reserve, with expectations shifting after recent employment and inflation data reduced the odds of a rate hike. Underlying demand remains supported by central bank purchases, including from China, and stronger inflows into gold ETFs, though the report flags risks from elevated Treasury yields and energy-driven inflation tied to the US-Iran stalemate.
Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%