(Bloomberg) — Gold traded near a three-month high, as traders weighed the US Treasury’s next move in the bond market after the surprise intervention that’s revived concerns around fiscal policy.
Bullion edged higher, nearing $4,680 an ounce, after adding more than 7% in four sessions of gains since the Treasury ramped up buybacks of long-dated government debt. The unexpected move has revived concerns about rising borrowing costs and exerted downward pressure on the dollar, making gold that’s priced in the currency cheaper for many buyers.
Treasury Secretary Scott Bessent has said he’s prepared to expand buybacks of costlier debt, though he refrained from any further signals on Monday. Investors will also be looking for Kevin Warsh to clarify his views on how the Federal Reserve should react to stubborn inflation when the central bank chair speaks Friday at the annual Jackson Hole gathering.
The recent efforts to control the cost of the US debt pile have renewed worries about inflation and dollar weakness, marking a return to the so-called debasement theme that helped drive gold’s blistering rally in 2025. George Efstathopoulos, a portfolio manager at Fidelity Holdings Ltd., told Bloomberg News on Monday that he’s doubled his fund’s bullion holdings over the past three weeks, citing uncertainty over Fed policy as a catalyst.
Gold’s marked rebound has taken the metal above the crucial 200-day moving average that’s often viewed as a bullish technical signal. In a sign of wider investor participation, bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tons last week, the most since January.
The metal’s safe-haven attributes are also being tested by growing global trade tensions. The US has threatened economic punishment against any country doing business with Iran as part of a campaign to isolate the Islamic Republic. The world’s largest economy is also spiraling into a trade war with Canada after talks broke down last week.
Gold climbed 0.5% to $4,676.92 an ounce at 7:45 a.m. Singapore time. Silver rose 0.9% to $69.53. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, fell marginally.
More stories like this are available on bloomberg.com
