Gold Blasts Through $4,600 as U.S. Debt Concerns Mount
Gold prices surged to their third consecutive weekly gain after concerns over U.S. debt sustainability and a weaker dollar pushed the precious metal above $4,600 per ounce.
The price of gold kicked off the week at $4,381.12 per ounce on Sunday evening but stalled on Tuesday as long-dated Treasury yields climbed and the U.S. dollar held firm.
However, just a few hours later, the U.S. Treasury announced it would double the size of buybacks for 10- to 30-year debt securities, driving long-end yields lower and intensifying concerns about the sustainability of U.S. borrowing.
The move sent gold prices surging above $4,500, and investors continued to drive up demand despite stronger U.S. services PMI data and rising yields.
By Friday afternoon, spot gold had reached a weekly high of $4,632.14 per ounce and held above $4,600 at the weekly close.