Gold approaches a three-month high amid concerns about the dollar
Kyiv • UNN
Gold rose to above $4,620 per ounce following the U.S. Treasury Department's intervention in the bond market. Investors fear a weakening dollar.
The price of gold traded near a three-month high on August 24 after the intervention of the U.S. Treasury Department in the bond market intensified concerns about a weakening dollar. Bloomberg reports, writes UNN.
Details
The price of gold rose 0.5% to above $4,620 per ounce, extending its third consecutive week of gains. Last week, the metal climbed more than 5% after the U.S. Treasury unexpectedly decided to increase its buyback of long-term government bonds, which led to a decline in their yields and weakened the dollar.
Investors return to the "debasement trade"
The U.S. Treasury's intervention raised concerns that Washington's policy could undermine confidence in the dollar and make alternative assets more attractive. This trend is bringing back the so-called "debasement trade," which became one of the factors behind gold's 65% rise in 2025.
U.S. Treasury Secretary Scott Bessent said he was ready to expand buybacks of more expensive debt obligations. He also hinted that the administration could soon present a fiscal initiative to reduce the high costs of government borrowing.
What is supporting gold
Additional support for gold comes from concerns about the U.S. debt situation. Bridgewater Associates founder Ray Dalio urged investors to reduce their holdings of bonds and keep up to 15% of their assets in gold as protection against a possible debt crisis.
As of 7:53 a.m. Singapore time, gold was priced at $4,619.17 per ounce, up 0.4% after rising 1.9% on Friday. Silver gained 0.4% to $69.29 per ounce, while platinum and palladium were little changed. The Bloomberg Spot Dollar Index remained stable after falling in the previous session to its lowest level in more than three months.
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