Gold Surges as Dollar Weakness Trumps Treasury Yields
The recent weakness of the US dollar has provided a boost to gold prices, despite rising Treasury yields. Gold-focused ETFs have attracted billions of dollars in investments over the past five days, with $3.4 billion flowing into State Street Investment Management's SPDR Gold Shares ETF.
Natixis has raised its gold price forecast for the end of 2026 from $4,600 to $5,000 per ounce, citing a series of disappointing reports on the US economy and shifting market expectations. The precious metal is capitalizing on the US dollar's inability to benefit from high Treasury yields.
However, TD Securities warns against euphoria over a rally to record highs, noting that the conditions for this have not yet matured. They point to the price pullback ahead of Kevin Warsh's speech at Jackson Hole as evidence of this caution.