Gold Prices Surge Past $4,600/Ounce Amid US Debt Concerns
Gold prices continued their upward momentum for the third consecutive week as concerns about the US's ability to maintain public debt and the weakening USD contributed to its rise.
The precious metal broke through the $4,600/ounce mark after spot gold opened at $4,381.12 on Sunday evening (US time) and continued to rise throughout the first session of the week due to maintained buying power from previous recoveries.
However, the upward momentum slowed down on Tuesday as long-term US Treasury bond yields rose and the USD maintained its strength, causing spot gold prices to fall to a weekly low of $4,324.49 in the early morning of Wednesday.
The turning point came when the US Treasury Department announced the doubling of the scale of 10-30 year government bond repurchases, which decreased long-term bond yields and increased concerns about the sustainability of US public debt.
As a result, the USD weakened, prompting cash flow to flock to safe haven assets such as gold, causing prices to quickly surpass $4,500/ounce.