Gold hovered around $4,600 an ounce on Monday, trading near its highest level since mid-May, as persistent worries over US debt management and long-term fiscal sustainability supported the metal. Those concerns intensified after the US Treasury unexpectedly expanded its buybacks of longer-dated government debt, a move that drove bond yields and the dollar lower. The shift revived the so-called “debasement trade,” boosting demand for gold as an alternative store of value.
Treasury Secretary Scott Bessent has indicated that additional buybacks are possible and said the administration will soon unveil measures aimed at addressing borrowing costs, which remain at their highest levels in years. At the same time, oil prices eased but stayed elevated, a combination that could limit further gold gains by stoking inflation and tempering expectations for interest-rate cuts. Markets are also watching for a US announcement on additional sanctions against Iran. Gold is up roughly 13% so far this month.
