Gold Poised for Third Weekly Gain on US Treasury Buyback Plans
Gold prices are poised for their third consecutive weekly gain as the US Treasury's plans to buy back long-dated debt have investors concerned about the country's fiscal burden. The move has sent yields and the US dollar lower, boosting bullion.
The yellow metal is trading around $4,560 an ounce and is on track to end the week 4% higher. US Treasury Secretary Scott Bessent announced plans to expand buybacks of costlier debt and hinted at a fiscal initiative to address high borrowing costs.
Gold's rally has been driven by concerns about dollar weakness and US fiscal or monetary credibility, according to Charu Chanana, chief investment strategist at Saxo Markets. If gold closes above its 200-day moving average at $4,514 an ounce, it could be a significant technical signal.