Gold Surges to Highest Level Since May as US Treasury Buyback Plan Weighs on Dollar

Gold prices surged to their highest level since May 15, reaching around $4,625 in early Asian hours on Monday. The metal's strength is attributed to a weakening US Dollar, as indicated by the Treasury's potential bond buyback plan beyond $4 billion.

The Treasury's move has cooled down Treasury yields and pushed the Dollar lower. As gold is denominated in USD, a softer currency makes the metal cheaper for non-US investors, boosting demand.

Bart Melek, global head of commodity strategy at TD Securities, attributed the momentum to both technical and fundamental factors. 'A big factor, of course, is technical... next step is $4,700 if this momentum continues,' he said.