Gold Prices Soar Near Three-Month Highs Amid US Dollar Concerns
Gold prices have surged to near three-month highs as investors grow concerned about a weakening US dollar. The price of gold climbed as much as 0.5 per cent to above $4,620 an ounce in early trading, building on a third weekly gain.
The recent bond market intervention by the US Treasury has revived concerns that the administration's policies could lead to a weaker greenback and make other investments more attractive. This 'debasement theme' helped drive gold prices up 65 per cent last year.
US Treasury Secretary Scott Bessent has stated his willingness to expand buybacks of costlier debt, further driving confidence in gold as a safe-haven asset. Even billionaire investor Ray Dalio has weighed in on the matter, suggesting that investors should hold up to 15 per cent of their assets in bullion to hedge against the risk of a US debt crisis.
The Bloomberg Dollar Spot Index was little changed after dropping to its lowest level in over three months. Silver prices were flat at $68.97 an ounce, while platinum and palladium edged lower.