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Gold stays bid after Treasury buyback news pressures the US dollar

XAU/USD is up nearly 1.3% to about $4,663, after hitting $4,681, its highest level since May 14, as investors weigh fiscal concerns and upcoming US data.

Reported · Written up by our desk · Major Pairs

Gold prices extended their gains on Monday as a US Treasury buyback announcement continued to weigh on the US dollar, supporting safe-haven demand, according to FXStreet.

As of the time of writing, XAU/USD traded around $4,663, up nearly 1.3% on the day, after reaching an intraday high of $4,681, its highest level since May 14. The US Dollar Index fell to a three-month low earlier after the Treasury said it would increase liquidity-support buybacks for longer-dated government bonds, FXStreet said.

FXStreet added that geopolitical and macro catalysts were also in focus, with investors turning attention to sanctions plans around Iran and to risk events later this week. The outlet cited the July Personal Consumption Expenditures (PCE) Price Index due Wednesday, followed by Federal Reserve Chair Kevin Warsh speaking at the Jackson Hole Symposium on Friday.

Technical indicators described by FXStreet pointed to continued near-term bullish bias, with gold holding above the 200-day and 100-day moving averages, while the daily RSI at 72 flagged overbought conditions. The article also noted a moderately firm Average Directional Index and a positive MACD supporting the uptrend, while upside may be stretched.

Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%

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