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Gold Set for Third Weekly Gain on US Treasury Buyback Plans
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(Bloomberg) -- Gold was on track for a third weekly gain after the US Treasury's unexpected ramp-up in buybacks of long-dated government debt underscored concerns about its burden. Most Read from Bloomberg China Sentences Evergrande's Hui to Life for 'Heinous' Crime Bessent Deploys Debt Buybacks in Sign of Concern Over Yield Rise US 30-Year Bonds Reverse Gains From Treasury's Buyback Surprise Bessent Flags Bigger Debt Buyback Potential, Coming Fiscal Plan US Set to Cut Tariffs on Canada Metals, Autos in Trade Deal Bullion was trading around $4,530 an ounce, and was poised to end the week more than 3% higher. The US Treasury's surprise liquidity injection on Wednesday sent yields and the dollar lower, while boosting bullion. On Thursday, Treasury Secretary Scott Bessent said he's prepared to expand buybacks of costlier debt and flagged the administration would soon unveil a fiscal initiative to address the highest borrowing costs in years. While yields retraced much of the decline the buyback prompted later in the week, the move reflects concerns about soaring government debt. That is one of the themes that propelled gold's earlier multi-year rally as investors sought alternative safe havens. Bullion's rally of around 11% so far this month could be tempered by the rebound in energy prices that keeps inflation risks and rate-hike bets on the table. Oil is set for a sharp weekly gain after US President Donald Trump's threat to crush the Iranian economy further dimmed prospects of a near-term deal to reopen the Strait of Hormuz. The White House says it will release details of the plan on Monday. The yellow metal has held above the key $4,000-an-ounce support threshold since mid-July, when dip-buyers emerged after a war-driven slump pushed it into bear territory the month before. It's still down around 15% from before the US-Iran conflict erupted in late February. Spot gold rose 0.2% to $4,522.90 an ounce at 8:11 a.m. in Singapore. Silver advanced 0.1% to $68.16 an ounce. Platinum and palladium also rose. The Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.1% lower. --With assistance from Wendy Wells. Most Read from Bloomberg Businessweek The Diamond Industry's Old Guard Wants You to Buy 'Natural' The Seniors Against Senior Housing The Midwest City Keeping the American Dream Alive for First-Time Homebuyers Big Pharma Is Hooked on Chinese Licensing Deals China's Chip Industry Is Having a Breakout Moment ©2026 Bloomberg L.P.
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