Gold Surges to Three-Month High as Dollar Weakens
Gold prices surged to a three-month high on Tuesday, reaching $4,696.18 an ounce, as investors sought safe-haven assets amid economic uncertainty. The precious metal has been gaining momentum since mid-May, driven by a weaker dollar and falling Treasury yields.
The dollar's decline was triggered by the Treasury Department's expansion of bond buybacks last week, which led to a 3% jump in gold prices. Global gold-backed exchange-traded funds recorded $3 billion in net inflows in July, reversing two consecutive months of outflows.
Bitcoin also benefited from the dollar's weakness, crossing $80,000 for the first time since mid-May and reaching $81,237 before pulling back. Jake Kennis, senior research analyst at Nansen, noted that 'BTC and gold rising together while the dollar weakens is consistent with debasement and fiscal-credibility concerns.'