Gold Soars to Three-Month High on US Debt Buybacks and Geopolitical Risks

Gold prices have surged to their highest level in three months, trading around $4,630 per ounce on August 25, 2026. The primary catalyst behind this rally is the U.S. Treasury Department's unexpected decision last week (August 19-21) to double its buybacks of long-dated government debt.

This move has unsettled markets by raising significant concerns over the sustainability of U.S. fiscal policy and the dollar's stability, prompting investors to seek the traditional safe-haven asset of gold.

Ricardo Evangelista, senior analyst at ActivTrades, noted that gold's ability to hold above $4,600 depends heavily on continued pressure on the U.S. dollar and stable or declining Treasury yields.