XAU/USD climbs 13% this month as US Treasury buybacks and debt concerns fuel demand for safe-haven assets.
Gold (XAU/USD) surged to $4,600, its highest level since mid-May, as macroeconomic uncertainty drove investors toward the precious metal. The rally extends a third consecutive weekly gain, with prices up nearly 13% this month.
The US Treasury’s decision to double liquidity-support buybacks for longer-dated securities to $4 billion per operation sparked the latest advance. While long-term Treasury yields initially dropped, they later recovered, failing to halt gold’s momentum. Persistent inflation, rising US debt, and large budget deficits have weakened confidence in US assets, pressuring the USD.
The US Dollar Index (DXY) fell to near three-month lows at 98.65. Uncertainty over Federal Reserve policy, amid reduced forward guidance, has further fueled demand for gold as a hedge.