Investors drive gold to $4,680 an ounce as the dollar stays weak despite rising Treasury yields, signaling broader fiscal credibility worries.
Gold prices remain near a three-month high, trading between $4,650 and $4,680 an ounce, as the dollar’s persistent weakness offsets rising Treasury yields. The divergence suggests markets are pricing in concerns over fiscal credibility, independent of recent bond market interventions.
The metal posted a third consecutive weekly gain last week, rising over 5% after the Treasury’s bond buyback plan temporarily suppressed yields and the dollar. While yields have since rebounded, the dollar index remains near its lowest levels since May, supporting gold’s rally.
Rising oil prices add complexity, as higher energy costs could sustain inflation and limit potential rate cuts. Upcoming events, including July PCE data and a Jackson Hole speech, may determine whether gold’s momentum persists or fades.