Gold Surges Past $4,600 as Treasury Doubles Bond Buybacks

Gold prices surged to their third consecutive weekly gain as concerns over U.S. debt sustainability and a weaker dollar pushed the precious metal above $4,600 per ounce.

The price of gold started the week at $4,381.12 per ounce on Sunday evening but stalled on Tuesday as long-dated Treasury yields climbed and the U.S. dollar held firm. However, just hours later, the Treasury Department announced that it would double the size of buybacks for 10- to 30-year debt securities, driving long-end yields lower and intensifying concerns about U.S. borrowing.

Gold's breakout came when the U.S. Treasury announced its decision to expand long-dated bond buybacks, which briefly drove long-end yields lower and intensified concerns about the sustainability of U.S. borrowing. The dollar weakened after the announcement, and gold surged above $4,500 as investors moved into hard assets.

This week's economic news calendar features fresh readings on consumer confidence, housing, inflation, and economic growth, with new Fed Chair Warsh's first Jackson Hole speech on Friday the clear highlight.