Gold Hits Three-Month High as Bitcoin Surges Amid Dollar Weakness

The US Treasury's massive debt buyback programme has sent gold to a three-month high and Bitcoin soaring.

European stock markets closed with solid gains on the final trading day of a difficult week, but Milan lagged behind, remaining unchanged. The market was skeptical about MPS' dual public offer for BPM and Banca Generali due to its complexity and uncertainty.

Treasury Secretary Scott Bessent said that the government could increase Treasury bond buybacks, but this move will likely reinforce the trend towards de-dollarisation, argues Ipek Ozkardeskaya of Swissquote. This trend is fueling the dual rally in gold and Bitcoin, which are on track for their best week in over two years.

The US Treasury's intervention has provided a respite from the turmoil over US yields, but doubts are resurfacing about tech valuations and the scale of investment needed to sustain their rally. The search for alternatives to the dollar and renewed tensions over US debt have also benefited gold and Bitcoin.