Gold hits multi-month high as Treasury buybacks boost demand

Gold hit a multi-month high above $4,600 as Treasury buybacks weakened the dollar. Lower yields and economic concerns boosted demand for gold and Bitcoin as safe-haven assets.

Gold has surged to its highest levels in months, with spot prices surpassing $4,600 and futures exceeding $4,700 per ounce. This rally was triggered by the U.S. Treasury's decision to double its buybacks of long-dated government bonds from $2 billion to at least $4 billion per operation, effective from September 9 to November 4, 2026. The move has driven Treasury yields lower and weakened the dollar, making gold and other real assets more attractive to investors. Bitcoin also benefited from the shift, briefly jumping 8% to nearly $70,000. The rally in gold is further supported by moderate U.S. inflation data, reduced expectations for immediate Federal Reserve rate hikes, and increased central bank demand for gold. Market participants are closely watching upcoming inflation data and central bank signals, as a stronger dollar or higher yields could reverse the trend. The current environment highlights investor concerns over U.S. debt sustainability and a growing preference for safe-haven assets like gold and Bitcoin.