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Gold tops $4,500 as US debt worries boost safe-haven demand
Gold rose more than 4% on Wednesday after a US Treasury plan to expand 10 to 30 year bond buybacks helped calm bond yields and weaken the US dollar.
Commerzbank analyst Carsten Fritsch said gold has surged, pushing above USD 4,500 per troy ounce as investors seek safe havens amid US debt concerns and a weaker US dollar.
FXStreet reports the US Treasury bond buyback announcement sparked the sharpest daily gold rally in six and a half months, after the previous days saw a sharp rise in bond yields tied to long-term inflation risks and growing debt concerns.
The note also points to strong demand for gold exchange traded funds, with gold ETF holdings tracked by Bloomberg recording their largest daily increase since September 2025, at 18 tons.
Fritsch added that upside momentum may slow if US inflation data remains elevated, while the broader backdrop includes US public debt breaking through USD 40 trillion for the first time this week, with interest payments expected to reach USD 1.1 trillion this fiscal year.
Latest closeGold $4,432.00 ▲1.6%