Gold Soars to Three-Month High as Dollar Weakens and Treasury Yields Fall

Gold prices surged to a three-month high on Tuesday, reaching $4,696.18 an ounce, its highest level since May 14. The precious metal's value has been boosted by a weaker dollar and falling Treasury yields, which have increased demand for gold investment products.

The World Gold Council reported that global gold-backed exchange-traded funds recorded $3 billion in net inflows in July, reversing two consecutive months of outflows. Holdings increased by 23 metric tons to 4,068 tons, while assets under management rose 1% to $530 billion.

Bitcoin also rallied alongside gold, climbing above $80,000 for the first time since mid-May and reaching $81,237 before giving back some of its gains. Jake Kennis, senior research analyst at Nansen, noted that the correlation between gold and Bitcoin is consistent with debasement and fiscal-credibility concerns.