Gold surged to its highest price in three months this week, climbing past $4,600 an ounce and brushing $4,650 in futures trading, as the U.S. Treasury’s expanded bond buybacks revived fears of a weakening dollar.
Key Takeaways
Gold climbed 5% this week to $4,620, its highest price since May.The dollar index dropped to 98.723 on Aug. 19 after Treasury doubled its bond buyback program.Bitcoin, up near $78,000, is riding the same debasement trade, but analysts say gold differs.Saxo Bank commodity strategist Ole Hansen said gold was “continuing its strong run higher, gaining 1.8% on the day and 5.1% on the week,” calling the move above its 200-day moving average the technical trigger for fresh momentum buying, and flagging a move topping $4,770 as the next resistance level.
The Treasury’s buyback decision appears to be that signal as gold is now trading well above the level the Council flagged as its bullish case for 2026.
Treasury’s Buyback Bet Behind the MoveBuybacks let the Treasury retire older, less-liquid bonds by purchasing them back with proceeds from new debt sales, a tool it has leaned on repeatedly this year to keep long-term borrowing costs from spiraling after the yield spike rattled auctions.
