- Gold prices held near a three-month high on Monday after surging more than 5% last week, driven by U.S. Treasury efforts to contain longer-term borrowing costs.
- Spot gold broke out over the 200-day moving average on Friday, closing at $4,602.99, up 1.86%.
- The U.S. Treasury announced it would at least double buybacks of government bonds with maturities of 10 to 30 years, starting at a minimum of $4 billion each.
- The Federal Reserve paused rate increases in July, which contributed to a favorable environment for gold prices.
- Softer economic data reduced bets on another increase in September, prompting futures buyers to move into gold.
Gold prices have surged to a three-month high, closing at $4,602.99, up 1.86% on Friday, as U.S. Treasury buybacks and a weakening dollar drive demand for the precious metal.12
The U.S. Treasury Department announced plans to double buybacks of government bonds, starting at a minimum of $4 billion each, which has contributed to a decline in long-term yields and the dollar's value.3
"The latest leg higher has been closely linked to the U.S. Treasury’s surprise decision to ramp up purchases of longer-dated government debt,"
As the dollar index hovers near a three-month low, traders are increasingly favoring gold as a hedge against inflation and currency devaluation.
Gold has moved above the 200-day moving average around $4,513, a level traders often watch as a sign that a longer-term trend has turned more positive.
The recent rally has been fueled by a combination of factors, including softer economic data that led traders to reduce bets on further rate hikes by the Federal Reserve, which paused increases in July.45
Gold-backed ETFs recorded their largest single-day inflow since September 2025, extending a streak of net inflows to five consecutive weeks, indicating strong investor interest.
"The backdrop has become more striking after U.S. government debt crossed $40 trillion for the first time,"
The next major technical target for gold is around $4,700 if the momentum continues.
“The Treasury's decision to at least double buybacks of 10- to 30-year bonds, starting at $4 billion each, has revived a trade favoring hard assets as U.S. debt crossed $40 trillion. Gold-backed ETFs saw their largest single-day inflow since September 2025, extending a five-week streak of net inflows.”
