Gold Hits Three-Month High Amid US Fiscal Concerns

Gold prices continued to rise on Monday, reaching $4,649.63 an ounce and moving closer to its three-month high as concerns over US fiscal risks and Treasury efforts to contain long-term borrowing costs supported demand for bullion.

The latest leg higher has been linked to the US Treasury's surprise decision to ramp up purchases of longer-dated government debt, which pushed bond yields and the dollar lower. This move revived a trade where investors favor hard assets like gold when they become less confident in the long-term purchasing power of fiat currencies.

Treasury Secretary Scott Bessent indicated that the government could expand the buyback program further and said the administration would soon unveil a fiscal initiative aimed at addressing the high cost of government borrowing. This has raised questions about whether policymakers are increasingly willing to manage borrowing costs rather than allow the bond market to determine them freely.

Gold-backed ETFs recorded their largest single-day inflow since September 2025, and investor appetite for bullion has broadened alongside the Treasury-driven rally. The technical picture is also strengthening, with gold moving above its 200-day moving average around $4,513.