Gold Climbs Above $4,650 to 3-Month High as Treasury Buybacks Weigh on Dollar
Updated
Updated · Bloomberg · Aug 24
Gold Climbs Above $4,650 to 3-Month High as Treasury Buybacks Weigh on Dollar
3 articles · Updated · Bloomberg · Aug 24
Summary
Gold rose as much as 1.2% to above $4,650 an ounce, its highest intraday level since mid-May, extending a late-summer rally.
The move followed the US Treasury's surprise ramp-up in buybacks of long-dated government debt, which briefly pushed long-term yields lower and dragged down the dollar.
bullion had already posted a third straight weekly gain, rising more than 5% last week as the buyback decision revived worries about US fiscal policy and the dollar's outlook.
That reaction underscores gold's role as a hedge when investors see debt-management steps as potentially undermining confidence in US finances and the currency.