1 week ago
Gold Set for Third Weekly Gain on Treasury Buybacks
Gold prices were rising for the third week in a row.
The United States Department of the Treasury unexpectedly bought more long-term government debt.
This pushed some bond yields and the dollar lower, which helped gold prices rise.
Treasury Secretary Scott Bessent said more buybacks may happen.
He also said the government will soon announce a plan related to high borrowing costs.
Investors have been buying gold partly because they are worried about large government debt.
But more expensive energy could increase inflation worries and make higher interest rates more likely.
Those concerns could make it harder for gold to keep rising.
Gold traded near $4,530 an ounce and was on track for a weekly gain of more than 3%.
The United States Department of the Treasury unexpectedly increased buybacks of long-dated government debt, pressuring yields and the dollar.
Treasury Secretary Scott Bessent said the United States could expand buybacks and soon announce a fiscal initiative addressing high borrowing costs.
Gold has risen about 11% this month as concerns over government debt encouraged demand for alternative safe-haven assets.
Higher energy prices could revive inflation concerns and expectations of interest-rate increases, potentially limiting gold’s advance.
- Who
- Gold traders, the United States Department of the Treasury, Treasury Secretary Scott Bessent, and investors concerned about government debt.
- What
- Gold was headed for a third consecutive weekly gain after the Treasury increased buybacks of long-dated government debt and indicated more action could follow.
- Where
- Gold was trading in Singapore, while the debt buyback and fiscal plans concerned the United States.
- When
- This week, with the Treasury buyback occurring Wednesday and Scott Bessent’s comments reported Thursday; the article is dated 2026.
- Why
- The buybacks highlighted concerns about the United States’ rising debt burden, while lower yields and a weaker dollar supported gold prices.
Key facts
- Gold price
- Spot gold rose 0.2% to $4,522.90 an ounce at 8:11 a.m. in Singapore.
- Weekly performance
- Gold was poised to finish the week more than 3% higher.
- Monthly performance
- Gold had gained about 11% so far in the month.
- Treasury action
- The United States Department of the Treasury unexpectedly increased buybacks of long-dated government debt.
- Possible next steps
- Scott Bessent said the Treasury was prepared to expand buybacks of costlier debt and that a fiscal initiative would soon be unveiled.
- Support level
- Gold had remained above $4,000 an ounce since mid-July.
- Other metals
- Silver rose 0.1% to $68.16 an ounce, while platinum and palladium also advanced.
Quotes
Scott Bessent
US Treasury Secretary
“I’m prepared to expand buybacks of costlier debt and the administration will soon unveil a fiscal initiative to address the highest borrowing costs in years.”
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Sources
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