Gold nears 3-month high as US Treasury buybacks shake dollar
Why it matters: Bullion was up about 5% for the week near $4,564 an ounce as investors questioned US fiscal credibility.
Gold climbed to its highest level since mid-May after the US Treasury unexpectedly stepped up buybacks of long-dated government debt, a move that pushed the dollar lower and revived concerns about Washington’s borrowing burden. Spot gold traded near $4,564 an ounce on Friday and was on track for a roughly 5% weekly gain, extending an August rally that has reached about 14%. Treasury Secretary Scott Bessent said he was prepared to widen purchases of higher-cost debt and pointed to a fiscal initiative due Monday. Even after long-end Treasury yields retraced much of their initial drop, gold held firm, signaling demand tied less to lower yields than to worries over dollar weakness and confidence in US policy.