Gold futures surged to a three-month high on Tuesday, extending a sharp August rally after the U.S. Treasury expanded its debt buyback program and signaled potential use of its $950 billion operating account to fund the operations.
December COMEX gold futures reached $4,730.10 per troy ounce by 8:30 a.m. ET, up $49.50 or 1.06% from Friday’s settlement. Spot gold traded as high as $4,673.88, reflecting a session gain of 2.12%, according to market data. The metal has climbed roughly 14% in August alone, following a 13.13% advance over the prior 30 days, after trading below $4,000 in late July.
The surge breaks technical levels not tested in three months. Gold cleared $4,600 for the first time since May 15 and briefly exceeded $4,700, a threshold last seen on May 13. The move follows a five-week winning streak—the longest since October 2025—with the latest leg delivering approximately 5% last week alone.
The rally traces back to August 19, when the Treasury announced it would at least double the size of its liquidity-support buyback operations for longer-dated debt, raising the per-operation ceiling from $2 billion to at least $4 billion across the 10-to-20-year and 20-to-30-year maturity buckets. The program, running from September 9 through November 4, initially triggered a sharp drop in long-dated yields, with the 30-year Treasury yield falling as much as 9 basis points to 5.196%, before reversing course.
The precious metals complex responded in unison, with gold, silver, platinum and palladium all posting gains of 4%, 8%, 7% and 3%, respectively. The synchronized advance suggests a monetary rather than physical demand driver, analysts said.
The market’s interpretation centers on fiscal policy signaling. A Treasury buyback program that caps borrowing costs without reducing the deficit implies continued currency dilution, a condition historically supportive for gold, according to the analysis. The national debt has surpassed $40 trillion, while the federal deficit remains near 6% of GDP, with interest expenses approaching $1.2 trillion this year.
On Monday, two senior Treasury officials indicated the department could tap its $950 billion General Account—the government’s operating balance at the Federal Reserve—to fund the expanded buyback program. The account, built up from tax receipts and exceeding the prior administration’s $550–$600 billion target, immediately shifted market expectations.
Long-dated yields fell further after the report, with the 10-year Treasury yield declining 3 basis points to 4.708% and the 30-year yield dropping 4 basis points to 5.23%. Spot gold added over $42, while December futures gained $49.50, extending the metal’s advance.
Technical levels now frame the next directional move. Resistance sits at $4,749, the May 8 swing high, followed by $4,800 with limited structural barriers. On the downside, first support is the 200-day simple moving average at $4,514, with additional floors at $4,500, $4,379 (100-day SMA) and $4,300. The distance to key levels is nearly balanced: from the current $4,645.90, the gap to $4,749 is 2.2%, while the distance to the 200-day SMA is 2.8%, according to the analysis.
A sustained close above $4,749 with a weaker dollar could open a path toward $4,800 and beyond, while a break below $4,514 would negate the August structure and expose $4,379 within days.
