Gold Stays Above $4,600 as Treasury Buybacks Fuel Dollar-Debasement Trade

The price of gold remains above $4,600 per ounce as investors interpret Treasury buybacks as a move to alleviate long-term funding pressures and potentially weigh on the US dollar.

On Thursday, spot gold increased by 0.4% to $4,609.97 per ounce, while December U.S. futures rose 0.2% to $4,664.40.

The Treasury plans to increase long-end buyback operations to a minimum of $4 billion, at least doubling the current amount, starting September 9.

This policy aims to alleviate long-term funding pressures but does not generate new dollars like quantitative easing does.