1 week ago
Gold Nears Three-Month High as Traders Assess Treasury Moves
Gold prices moved close to their highest level in three months.
The metal has risen more than 7% in four trading sessions.
This happened after the US Treasury increased its purchases of some long-term government debt.
Investors are wondering whether this could affect inflation, borrowing costs and the value of the dollar.
When the dollar falls, gold can become cheaper for buyers using other currencies.
Some investors are also buying gold because they are uncertain about Federal Reserve policy.
Trade tensions involving the United States, Canada and Iran are adding to demand for gold as a safe-haven asset.
Silver, platinum and palladium prices also went up.
Gold rose toward $4,680 an ounce after gaining more than 7% in four sessions.
The rally followed the US Treasury’s increased buybacks of long-dated government debt.
Investors are concerned the debt-management efforts could fuel inflation, weaken the dollar and raise borrowing-cost risks.
Gold moved above its 200-day moving average, while bullion-backed exchange-traded funds added more than 28 tons last week.
Gold also benefited from trade tensions involving the United States, Canada and Iran; silver, platinum and palladium advanced as well.
- Who
- Gold traders and investors, along with US Treasury Secretary Scott Bessent and Federal Reserve policymakers.
- What
- Gold traded near a three-month high after the Treasury increased buybacks of long-dated government debt.
- Where
- The trading was reported in Singapore time, while the relevant debt and policy actions concern the United States.
- When
- The report described trading on Monday, with gold at $4,676.92 an ounce at 7:45 a.m. Singapore time; investors are also awaiting a Friday speech at Jackson Hole.
- Why
- Concerns about inflation, dollar weakness, Federal Reserve policy, borrowing costs and global trade tensions supported demand for gold.
Key facts
- Gold price
- $4,676.92 an ounce, up 0.5% at 7:45 a.m. Singapore time
- Recent performance
- Gold gained more than 7% across four sessions
- Treasury action
- The US Treasury ramped up buybacks of long-dated government debt
- ETF demand
- Bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tons last week
- Silver price
- Silver rose 0.9% to $69.53 an ounce
- Technical indicator
- Gold moved above its 200-day moving average
- Upcoming focus
- Investors are watching for Kevin Warsh’s views on Federal Reserve policy at Friday’s Jackson Hole gathering
Sources
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