XAU/USD surges to $4,520 as US Treasury buybacks and Fed policy fuel safe-haven demand amid stagflation fears.
Gold prices climbed to $4,520 in early Asian trading, reaching their highest level since early June. The rally follows a weakening US Dollar and the Treasury Department’s announcement of a buyback program for longer-dated securities to curb borrowing costs.
The Federal Reserve’s July minutes showed policymakers considered rate hikes if inflation persisted, though traders are focusing on stagflation risks and energy shocks. TD Securities noted gold could see renewed inflows due to Treasury liquidity support and lower real rates.
Market reaction has been swift, with investors shifting toward gold as a hedge against economic uncertainty and potential Fed dovishness.