US Gold Price Surges Past $4,650 Amid Dollar Worries
The US gold price surged past $4,650 per ounce on Monday, August 24, as investors flocked to the precious metal amid worries about the finances of the U.S. government and the future sustainability of the dollar.
Gold has been trading above its 200-day moving average near $4,513 and is nearing a three-month high. The current rally comes with its own set of dangers, however, as gold is still trading below its 2026 high of around $5,602.
The US Treasury's decision to ramp up its purchases of long-term debt instruments has driven down bond yields and raised market worries about whether the authorities are comfortable meddling with interest rates. This has added to the strength of the 'dollar debasement trade', where investors seek tangible assets like gold amid weakening faith in paper money.
Gold's technical structure has improved sharply, and a move above $4,700 could encourage another wave of momentum buying. However, a failure to hold the $4,605 area would weaken the immediate bullish setup.