Treasury Buybacks Send Gold Soaring to Three-Month High

Gold prices rose for the third consecutive week, reaching $4,661.60 per ounce on Friday after a 1.9% daily gain.

The increase was triggered by the U.S. Treasury's announcement to expand buybacks of longer-dated government bonds, which depressed yields and weighed on the dollar.

This move is significant because it marks a shift in how markets price Washington's debt moves, with expectations of lower real long-term interest rates now carrying more weight than persistent inflation concerns.

Gold has added 4.2% since soft U.S. employment figures were released roughly a week before Friday's breakout, and the Federal Reserve's decision to hold rates steady about a month ago has contributed to the metal's 13% increase since then.