Gold climbed to its highest level in more than three months on Monday, with spot prices reaching $4,650.31 per ounce and December futures adding $18.50 to $4,699.10, extending gains after the U.S. Treasury signaled expanded long-term bond buybacks last week. Bullion has surged more than $300 per ounce since the intervention was announced, as investors bet the move will suppress yields and ease Washington's debt-servicing burden following national debt crossing $40 trillion.
The so-called debasement trade contributed to a 65% gold rally in 2025, and Goldman Sachs now forecasts prices reaching $4,900 by year-end. Gold-backed exchange-traded funds recorded inflows exceeding 28 tonnes last week, the highest since January, while Poland's central bank disclosed reserves rising to 640.2 tonnes by end-July.
Investor Ray Dalio recommended gold holdings in a LinkedIn post Friday. Markets now await Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole symposium on Friday for signals on monetary policy direction.