Gold Soars Past $4,630 Amid US Debt Concerns
Gold prices surged past $4,630 an ounce on Thursday as investors flocked back to the 'currency-debasement trade', driven by concerns over US debt and Treasury intervention. Despite hotter-than-expected US inflation, which could revive Fed hike risks, gold maintained its upward momentum.
The latest advance comes after the Treasury announced it would double liquidity-support buybacks for longer-dated government bonds to $4 billion per operation from September 9. This move has intensified investor debate over US fiscal policy and the dollar's purchasing power.
According to ANZ Research, demand for gold continues to benefit from the dollar-debasement trade, despite higher interest rates remaining a potential constraint. Gold rose another 0.5% to about $4,618 during Thursday's Asian session.
The concern is broader than one Treasury programme, with investors increasingly using bullion as protection against persistent deficits, rising government borrowing, and uncertainty over how policymakers intend to manage elevated long-term yields.