Gold rises to a three-month high as last year’s “depreciation trade” that fueled the price surge returns in full force

Gold rises to three-month high as US Treasury’s bold interventions to curb soaring borrowing costs once again spark investor concerns over the nation’s fiscal burdens. Gold prices climbed to their highest since mid-May on Friday and are on track for an approximately 5% gain this week. Since the US Treasury’s unexpected announcement on Wednesday to expand long-term bond buybacks, gold has continued to rally, while US Treasury yields and the dollar have both declined. This direct intervention to suppress borrowing costs has reignited worries among investors and analysts that US policies could undermine market confidence in the dollar and drive capital towards alternative assets. A similar logic was one of the key factors behind gold’s 65% surge in 2025. Bhanu Baweja, Chief Strategist at UBS Group, told Bloomberg TV that the Treasury’s moves are “a very important signal for gold.” He stated that gold will be the main beneficiary of the US’s efforts to push down financing costs, while “the dollar will pay the price.”