Gold Soars to Near Three-Month Highs Amid Treasury Buyback Expansion

Gold prices surged to near three-month highs on Friday, driven by the U.S. Treasury's decision to expand its buyback of long-dated government bonds and a weakening dollar.

The metal climbed 1.6% to $4,591.01 per ounce, with futures climbing 1.7% to $4,648.00, marking roughly 4.2% in weekly gains.

The Treasury Department announced on Wednesday that it would at least double the maximum size of its liquidity support buyback operations for longer-dated securities, raising the cap from $2 billion per operation to at least $4 billion.

Treasury Secretary Scott Bessent signaled he is prepared to expand the program further, but his interview on Thursday failed to reassure investors about U.S. debt and fiscal sustainability, causing long-end Treasury yields to climb back up.