Gold surges $65 to $4668, its highest since mid-May, amid USD policy shifts and Treasury intervention concerns.
Gold climbed $65 to $4668, marking its third large gain in four trading days and its highest level since May 17. The rally extends a monthly gain of over $600, driven by perceptions of a U.S. shift away from a strong-dollar policy and Treasury market interventions.
Recent moves include Treasury attempts to lower bond yields, though last week’s efforts backfired as yields rebounded. Reports suggest the Treasury may use its cash account for buybacks, potentially targeting the long end of the curve without issuing new bills. Meanwhile, 10-year yields fell 3.8 bps to 4.70%.
Rumors of U.S. pressure on allies to avoid selling Treasuries, including Japan and Saudi Arabia, have added to dollar weakness. Concerns over weaponizing the USD may push nations to diversify reserves, further supporting gold demand.