Gold and Bitcoin Surge as U.S. Debt Fears Send Investors Running From the Dollar

TLDR

• The U.S. Dollar Index hovered near its lowest level since mid-May, trading around 98.88
• The U.S. Treasury doubled long-end bond buybacks to $4 billion per operation, spooking traders
• U.S. federal debt has passed $40 trillion, with the deficit nearing $1.8 trillion
• The Canadian dollar weakened after the U.S. imposed 50% tariffs on $20 billion of Canadian goods
• Bitcoin and gold gained as investors looked to diversify away from U.S. assets

The U.S. dollar stayed near its lowest point in months on Monday. The U.S. Dollar Index was trading around 98.88, close to its weakest level since mid-May. The index had already fallen nearly 1% the previous week.

The weakness comes as investors grow more uncomfortable with the state of U.S. government finances. Federal debt has now surpassed $40 trillion, and the federal deficit is closing in on $1.8 trillion.

Last week, the U.S. Treasury said it would double its long-end bond buyback operations to $4 billion per session. The move was aimed at improving market liquidity and easing pressure on long-term yields.

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