Gold Surges to $4,601 as Treasury Buybacks Weaken Dollar

Gold prices surged to a three-week high of $4,601.52 on Friday, marking its strongest print since May 18 and adding to its weekly gains. This comes after the US Treasury announced it would at least double its long-dated debt buybacks, which sent yields and the dollar plummeting.

Despite yields reversing course on Thursday, gold maintained its momentum, closing above $4,500 before pushing higher again on Friday. The metal's resilience in the face of a reversed driver has led analysts to conclude that it is trading on what the driver revealed, rather than the driver itself.

The technical structure and flow data have both improved this week, while the macro argument for gold has strengthened with the Treasury's debt management changes. This has led some to suggest that $4,601.52 could become a shelf, rather than a ceiling, for gold prices.