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Gold nears three-month high as Treasury buybacks weigh on dollar
Bullion edged toward $4,680 an ounce after the Treasury ramped up buybacks of long-dated debt and raised renewed debate over borrowing costs and inflation.
Gold traded near a three-month high as investors assessed the next move in US bond markets following surprise Treasury action that reignited concerns about fiscal policy. Bullion edged higher toward $4,680 an ounce, extending gains after the Treasury stepped up buybacks of long-dated government debt.
The unexpected buyback pace has revived worries about rising borrowing costs, while also putting downward pressure on the US dollar, a dynamic that can make dollar-priced gold cheaper for overseas buyers. The story notes Treasury Secretary Scott Bessent said he is prepared to expand buybacks of costlier debt, while offering no further signals Monday.
Investors are also watching guidance for how the Federal Reserve should respond to stubborn inflation, ahead of remarks by Fed chair Kevin Warsh at the annual Jackson Hole gathering Friday. Separately, Fidelity portfolio manager George Efstathopoulos said he doubled his fund’s bullion holdings over the past three weeks, citing uncertainty around Fed policy.
Gold has also moved above its 200-day moving average, described as a commonly followed bullish technical level, while bullion-backed exchange-traded funds added more than 28 tons last week, the most since January. The metal’s safe-haven demand is being tested by growing trade tensions, including threats targeting countries doing business with Iran and a trade-war spiral involving the US and Canada.
At 7:45 a.m. Singapore time, gold was up 0.5% to $4,676.92 an ounce, with silver higher by 0.9% to $69.53, and platinum and palladium also advancing, according to LiveMint Markets and its Bloomberg source.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|Platinum $1,756.80 ▲1.8%