Gold Climbs Above $4,650 as U.S. Fiscal Risks Boost Demand
MacroCommodity Impact 4
Gold extended its advance on Monday, moving above $4,650 an ounce and remaining close to a three-month high as concerns over the U.S. fiscal outlook and Treasury efforts to restrain longer-term borrowing costs continued to strengthen demand for the precious metal. At 02:42 ET, spot gold was up 1% at $4,650.63 an ounce, while gold futures gained 0.6% to $4,706.89. The rally follows a rise of more than 5% last week, marking a third consecutive weekly advance, and has gathered momentum following the U.S. Treasury's unexpected decision to increase purchases of longer-dated government securities. Treasury Secretary Scott Bessent indicated the government could expand the buyback programme further and intends to announce a fiscal initiative to address elevated borrowing costs. ANZ analysts said gold-backed exchange-traded funds recorded their largest single-day inflow since September 2025 and have now registered net inflows for five consecutive weeks, while gold has moved above its 200-day moving average near $4,513.
