Gold and Bitcoin Soar on Rising US Debt Costs

The price of gold has reached a three-month high, flirting with $4.6k and setting its third consecutive weekly gain since April.

Bitcoin has also broken above $79k for the first time since May 16th, marking its biggest weekly advance in over two years.

This surge is largely attributed to concerns surrounding rising US government debt costs, with the country's debt breaking above $40 trillion for the first time in history on August 19th.

The US Treasury plans to increase liquidity support buyback operations by at least double, which may bring down borrowing costs and yields on long-end Treasuries. This could lead to a weaker dollar, making gold and Bitcoin more affordable to global buyers.

However, the price surge may face a strong test when Fed Chair Kevin Warsh speaks at the Jackson Hole Symposium next Friday (August 28th). If he signals that Fed rate hikes are imminent, it could lead to a sharp correction in the prices of both gold and Bitcoin.