Gold Prices Rally Past $4,668 as Dollar Debasement Fears Return

Gold prices rallied to $4,668 an ounce before retreating slightly on Tuesday as investors weighed US fiscal concerns against inflation data and Federal Reserve Chair Kevin Warsh's Jackson Hole address.

The precious metal had surged over 5% last week following Treasury intervention in the bond market, which revived concerns about the dollar's purchasing power and sent investors towards bullion.

Gold's latest advance accelerated after the Treasury announced it would at least double the maximum size of liquidity-support buybacks for 10- to 30-year securities, raising them from $2 billion to at least $4 billion per operation starting September 9.

This decision reignited the so-called debasement trade, where investors favor scarce assets when they become concerned about government debt, currency weakness, or policies designed to suppress borrowing costs.