Gold Futures Soar as US Treasury Intervention Fuels Buying Spree

Gold futures have extended their upward momentum after gaining more than 5% last week, its third consecutive weekly advance. The metal briefly traded above $4,620 an ounce on Monday, building on Friday’s 1.9% gain and remaining close to its highest level in three months.

The recent surge has been closely linked to the US Treasury's surprise decision to ramp up purchases of longer-dated government debt. This move pushed yields lower and has revived a trade in which investors favor hard assets such as gold when they become less confident in the long-term purchasing power of fiat currencies.

US Treasury Secretary Scott Bessent indicated that the government could expand the buyback program further, raising concerns about whether policymakers are increasingly willing to manage borrowing costs rather than allow the bond market to determine them freely.