Gold Hits Three-Month High as U.S. Debt Fears Drive Investors to Bullion
TLDR
- Gold climbed above $4,650 an ounce, its highest level in three months
- The U.S. Treasury’s surprise bond buyback program pushed yields and the dollar lower
- U.S. government debt crossed $40 trillion for the first time
- Gold-backed ETFs saw their largest single-day inflow since September 2025
- Ray Dalio recommended investors put up to 15% of their portfolios in gold
Gold is trading near a three-month high after a surprise move by the U.S. Treasury revived fears about the long-term strength of the dollar and America’s fiscal health.
The metal climbed above $4,650 an ounce on Monday, extending a rally that has now seen gold gain more than 5% over the past week alone. That marks three straight weeks of gains.
The trigger was the Treasury’s decision to ramp up buybacks of long-dated government debt. The move pushed bond yields lower and weakened the dollar, making gold more attractive to investors.
Treasury Secretary Scott Bessent signaled the program could expand further. He also said the administration plans to announce a new fiscal initiative to address high government borrowing costs.
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