Key Highlights
- Precious metal surged past $4,650 per ounce, reaching its strongest position in three months
- Treasury’s unexpected bond repurchase initiative drove yields down and weakened the greenback
- America’s national debt exceeded $40 trillion, marking an unprecedented milestone
- Gold ETFs recorded their biggest daily inflow since September 2025
- Prominent investor Ray Dalio suggested allocating up to 15% of portfolios to the yellow metal
The price of bullion is hovering near a three-month peak following an unexpected Treasury Department action that has reignited concerns about the dollar’s long-term stability and the United States’ fiscal trajectory.
The precious metal surged beyond $4,650 per ounce on Monday, continuing a strong upward movement that has delivered over 5% gains in just the last seven days. This represents the third consecutive week of price appreciation.
The catalyst behind this rally was the Treasury Department’s announcement to accelerate repurchases of longer-maturity government bonds. This strategy drove bond yields downward and applied pressure on the dollar, enhancing gold’s appeal among market participants.
Treasury Secretary Scott Bessent indicated that the buyback initiative could be expanded even further. Additionally, he revealed plans for the administration to unveil a fresh fiscal strategy aimed at tackling elevated government borrowing expenses.
Declining Dollar Powers Bullion Gains
A weaker dollar makes dollar-denominated commodities like gold more affordable for international purchasers, typically boosting demand. This mechanism is currently driving market activity.
The Bloomberg Dollar Spot Index fell to its weakest point in over three months last week. While the currency has found modest support since then, downward pressure persists.
The United States government debt has breached the $40 trillion threshold for the first time in history, a landmark that has intensified investor anxiety regarding the nation’s financial sustainability.
Analysts at ANZ stated that gold’s breakthrough above the $4,500 level was underpinned by market expectations that Treasury officials will maintain efforts to suppress longer-dated yields. They highlighted that dollar weakness has channeled additional capital toward precious metals.
Market observers are troubled not only by declining yields. The Treasury’s direct involvement has sparked debate about the extent to which authorities are prepared to actively manipulate bond markets.
Expanding Investor Appetite
Exchange-traded funds backed by physical gold saw their most substantial single-session inflow since September 2025. These positive flows have now extended for five consecutive weeks, per ANZ data.
Hedge fund billionaire Ray Dalio reinforced the bullish sentiment. In a Friday LinkedIn update, he advised investors to reduce bond exposure and allocate as much as 15% of their capital to gold as protection against a possible U.S. debt crisis.
The yellow metal has also breached an important technical threshold. It climbed above its 200-day moving average near $4,513, which market technicians monitor as an indicator of sustained momentum. The next significant resistance level sits around $4,700.
Silver gained 0.2% to reach $69.15 per ounce. Platinum advanced 0.6%. Palladium experienced a slight decline.
Global central banks have maintained their gold acquisition programs, and the World Gold Council has identified persistent central-bank purchases as a critical supporting element alongside geopolitical tensions and inflation concerns.
At the time of publication, gold was trading at $4,634 per ounce, representing a daily increase of 0.66%.
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