Spot gold hits $4,696.18 an ounce amid dollar weakness and lower Treasury yields, while Bitcoin tests new highs above $80,000.
Spot gold climbed to $4,696.18 an ounce, its highest level since May 14, as a weaker dollar and declining Treasury yields fueled demand. The rally follows the Treasury Department’s bond buyback expansion last week, which pushed gold up 3% after the announcement.
Global gold-backed ETFs saw $3 billion in net inflows in July, reversing two months of outflows. Holdings rose by 23 metric tons to 4,068 tons, with assets under management increasing 1% to $530 billion. Bitcoin also rallied, briefly surpassing $81,237 before retreating.
Markets have priced out a September Fed rate hike amid softer economic data, easing concerns about further tightening. Short positioning in Treasury futures by Commodity Trading Advisors may add downward pressure on yields, supporting gold’s recovery.