Gold Holds Near Three-Month High Amid US Debt Concerns

Gold prices are holding steady near $4,634.90 an ounce after briefly reaching a three-month high of around $4,700 overnight.

The precious metal is being supported by concerns over sovereign-debt stress and possible currency debasement in the US, according to Ipek Ozkardeskaya, senior analyst at Swissquote.

Ozkardeskaya noted that gold's longer-term support is coming from a broader de-dollarization trade as global institutions diversify away from Treasuries and toward gold.

However, some analysts warn of overbought conditions in the gold market, which could lead to pullbacks.