Gold Prices Surge Amid Global Volatility and Rising US Deficits

Singapore's gold prices climbed this week as investors sought safety in the precious metal amid global volatility and rising US fiscal deficits. Gold edged closer to $4,600 an ounce on August 21 and was poised for a third straight weekly gain after the US Treasury announced plans to double its buybacks of 10- to 30-year government debt.

The move aims to stabilize the bond market and initially pushed Treasury yields lower and weighed on the US dollar. The greenback traded at around $1.27 on August 21, down from about $1.28 at the start of the week. Lower yields support gold as they reduce the opportunity cost of holding it.

The Straits Times Index (STI) slipped 0.95% through the week to close at 5,688.96 on August 21 due in part to SATS' 13.22% decline after its quarterly results showed slower profit growth amid geopolitical and inflationary pressures.