Gold prices surged to a level not seen in more than three months, buoyed by a softening US dollar and ongoing Treasury initiatives aimed at long-term debt markets. Investors are paying close attention to upcoming U.S. inflation data and remarks from Federal Reserve Chair Kevin Warsh for indications on the direction of monetary policy.
During early Monday trading, spot gold advanced by 0.8% to $4,641.27 per ounce after touching its highest point since mid-May. U.S. gold futures similarly moved up 0.4% to $4,697.70. This builds on last week’s more than 5% gain, marking gold’s third consecutive week of increases.
The precious metal’s recent momentum follows the U.S. Treasury’s unexpected announcement of increased purchases of long-dated government bonds. This intervention led both bond yields and the dollar to retreat; a softer dollar tends to enhance the appeal of gold for holders of other currencies. Concerns about the government’s approach to managing borrowing costs have pushed more investors toward gold as a hedge.
Market participants are closely watching for signals from the release of the July Personal Consumption Expenditures (PCE) price index and Fed Chair Warsh’s speech at the Jackson Hole conference. Any updates suggesting flexibility or caution in future rate decisions could maintain support for gold’s upward trajectory.
ANZ analysts observed that the Treasury’s intervention has aggravated worries about the fiscal outlook, especially as national debt recently surpassed $40 trillion and the dollar hovered at multi-month lows. The increased gold demand has also been reflected in flows into gold-backed ETFs, which saw their strongest single-day inflow since September 2025 and extended their run of net inflows.
Notably, ongoing geopolitical uncertainties and central-bank purchases have provided additional backing for gold’s resurgence above the $4,000-per-ounce threshold. The World Gold Council emphasized that central-bank buying remains a pivotal factor for gold demand as inflation and geopolitical risks remain elevated.
Meanwhile, other precious metals showed mixed results: spot silver remained steady near $68.98 per ounce, platinum edged up 0.1% to $1,878.88, while palladium traded flat at $1,350.
