Gold Soars Near Three-Month High on Treasury Intervention

Gold prices held near their three-month high on Monday after surging more than 5% last week, as U.S. Treasury efforts to contain longer-term borrowing costs revived concerns over the dollar and the country's fiscal position.

The move pushed bond yields and the dollar lower, reviving a trade in which 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.

Analysts at ANZ noted that gold's move above $4,500 was supported by expectations that the government would continue trying to keep longer-term yields under control, while pressure on the dollar encouraged investors to increase exposure to bullion.