Gold futures rose 0.4% to $4,716.40 per ounce on Tuesday, extending a weekly gain of more than 5% to mark the highest settlement since mid-May. Spot gold added 0.2% to $4,658.87, according to market data, as investors sought hedges against fiscal and geopolitical uncertainty.
The advance followed reports that Washington may deploy the U.S. Treasury’s nearly $1 trillion General Account to support longer-dated bond buybacks, a move that could cap rising yields and weaken the dollar. U.S. debt surpassed $40 trillion last week, fueling concerns over fiscal sustainability and prompting a rotation into hard assets. Brent crude futures fell 5% to $86.06 a barrel after a report citing Pakistani and Iranian military sources suggested a U.S.-Iran ceasefire agreement, easing supply-risk premiums.
Treasury Secretary Scott Bessent unveiled a new sanctions package on Monday under the initiative dubbed “Operation Economic Outcast,” targeting Iran’s financial enablers globally. Bessent stated that economic pressure was forcing Tehran to acknowledge U.S. leverage, warning that no country would be exempt from the measures. The announcement coincided with a joint statement from Iran and Oman on Tuesday reaffirming commitments to safe navigation through the Strait of Hormuz.
Technical analysts noted improved fundamentals for gold. Adam Turnquist, chief technical strategist at LPL Financial, said investor positioning had become cleaner than in January, when crowded bets had left the market vulnerable to corrections. He highlighted a softer dollar, renewed central-bank demand, and a break above the 200-day moving average as supportive factors. Turnquist cautioned, however, that the recent rebound’s strength could invite short-term consolidation.
U.S. Treasury yields extended a two-day decline on Tuesday, while markets awaited Wednesday’s key inflation data and a keynote address by Federal Reserve Chair Kevin Warsh at the Jackson Hole conference on Friday.
