XAU/USD rallies to $4,582 as US Dollar weakens following Treasury’s liquidity-boosting securities repurchase plan.
Gold prices surged to $4,582, approaching a three-month high near $4,600, driven by a sharp US Dollar selloff. The move follows the US Treasury’s announcement of a plan to repurchase long-term securities to enhance liquidity, fueling demand for precious metals.
The rally breaches the 200-day Simple Moving Average, with technical indicators signaling bullish momentum despite overbought conditions. Analysts note the unusual correlation, as gold and crypto gains suggest market concerns over fiscal credibility and borrowing cost management.
Bulls target $4,590 resistance, with further upside potential if the Dollar’s decline persists. The Relative Strength Index hovers near 70, indicating a stretched rally but no immediate reversal signs.