Gold and Bitcoin Surge on Treasury Bond Market Fight. Scarce Asset Owners Are This Market's Big Winners
Gold climbed to $4,698 an ounce as Treasury buy-backs stoked concerns about fiscal stress and currency debasement, analysts said.
- Gold traded at a three-month high of US$4,698 an ounce on Tuesday, extending a 5.1% gain from last week after Treasury Secretary Scott Bessent unveiled an expanded bond buy-back program.
- Treasury Secretary Scott Bessent announced the department would double bond buy-backs to at least $4 billion from $2 billion, signaling concerns about federal debt that has already surpassed $40 trillion.
- Bitcoin jumped 24% to nearly $80,000 since the announcement, while analyst Michael Hsueh wrote that the Treasury policy change is "underlining the gold constructive view" regarding hard assets.
- Two Treasury officials told CNBC that Bessent could utilize the nearly $1 trillion Treasury General Account to help fund expanded operations, prompting billionaire investor Ray Dalio to suggest holding 10% to 15% of portfolios in gold.
- Investors watch for a dovish tone from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium later this week, as Citigroup raised its three-month gold price target to $4,800.
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Gold is back in the spotlight after the Treasury's surprise bond maneuvers
credit should read CFOTO/Future Publishing via Getty ImagesGold prices have spiked following the Treasury's interventions in the bond market. The moves sparked fresh weakness in the dollar, which enhances gold's appeal to investors. Meanwhile, issues like the US fiscal outlook and the Iran war are boosting gold's reputation as a hedge. Gold prices have popped in recent days as a multitude of factors enhance the appeal of the precious metal among…
Gold continues its rise to its highest level since mid-May. On Tuesday, gold touched its highest level in more than three months, continuing its upward trend driven by the recent announcement by the US Treasury Department of a bond buyback program...
Gold and Bitcoin Surge on Treasury Bond Market Fight. Scarce Asset Owners Are This Market's Big Winners
Treasury Secretary Scott Bessent just made a move in the bond market that sent shockwaves through two of the most closely watched assets in finance, and the investors who positioned early are sitting on gains that would have seemed impossible weeks ago.
Gold prices have surprised everyone once again. After a rapid rise in just a few trading sessions, gold has reached a three-month high. Now the biggest question is about the month of September. Will this bullish streak continue or can profit booking be seen at higher prices? Market conditions and planetary signs are not showing a one-sided rise but a month of rapid ups and downs. On August 24, gold in the international market reached above $ 4,6…
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