Gold Soars to Three-Month High on Treasury Buyback Expansion

Gold prices have surged more than 7% over four trading sessions following the US Treasury's announcement of an expanded long-term Treasury buyback program. The move has brought gold close to its highest level in three months.

The expansion of Treasury buybacks has led to concerns about the US fiscal outlook and high borrowing costs, pressuring the dollar and increasing the appeal of gold for investors. Spot gold rose 0.5% to $4,676.92 an ounce as of August 24, according to Bloomberg.

Investor demand for gold is also strengthening, with gold-backed exchange-traded funds seeing inflows of more than 28 tons last week, the largest since January. Bullion has moved above its 200-day moving average, a key technical indicator pointing to bullish momentum.