Gold futures and spot prices hovered near three-month highs on Monday after the U.S. Treasury expanded long-term bond purchases, pushing benchmark yields lower and reducing the attractiveness of the dollar as a haven.
The spot price of gold was up 0.5% at $4,627.69 per ounce by 22:52 GMT, briefly touching above $4,620 earlier in the session. Gold futures rose 0.1% to $4,683.85. Silver fell 0.3% to $68.79 per ounce, while platinum declined 0.4% to $1,872.74.
The U.S. Dollar Index held nearly flat at 98.82, reflecting limited movement in the greenback despite the broader market shift. The development followed a week in which gold surged more than 5%, its third consecutive weekly advance, and added a 1.9% gain on Friday alone. Gold-backed exchange-traded funds extended a streak of net inflows to five straight weeks, with the largest single-day inflow since September 2025.
Analysts at ANZ attributed the rally to the Treasury’s surprise decision to increase purchases of long-term government bonds, which lowered yields and reduced the dollar’s appeal. The move intensified concerns over U.S. fiscal dynamics, they said, while reinforcing expectations that the government would seek to cap long-term borrowing costs. Treasury Secretary Scott Bessent indicated the administration could expand its bond buyback program and plans to unveil a fiscal initiative aimed at easing high borrowing costs.
Technical levels for gold remained in focus, with the 200-day moving average around $4,513 and a key psychological support level at $4,000 per ounce. The next technical target was cited near $4,700. The U.S. public debt surpassed $40 trillion for the first time, adding to the backdrop of elevated fiscal uncertainty that has supported demand for the metal.
The broader precious metals complex showed mixed performance, with silver and platinum declining as investors rotated into gold. The metal’s recent gains have been supported by a weaker dollar and lower bond yields, conditions that typically reduce the opportunity cost of holding non-yielding assets.
