FX.co ★ Gold Advances to Over 3-Month High

Gold rose to about $4,580 an ounce on Friday, its highest level since mid-May, extending its weekly advance to roughly 5%. The move was driven by renewed concerns over US fiscal sustainability after the Treasury unexpectedly increased planned purchases of longer-dated government debt, sending bond yields and the dollar lower. This intervention has intensified doubts about Washington’s ability to manage rising borrowing costs and strengthened demand for gold as an alternative store of value. Treasury Secretary Scott Bessent has signaled that additional buybacks may follow, while the administration is preparing further measures to address elevated financing costs. At the same time, higher oil prices may cap further gains in gold by keeping inflation pressures elevated and dampening expectations for interest-rate cuts. The US push to escalate economic pressure on Iran has also dimmed prospects for a swift reopening of the Strait of Hormuz, lending continued support to energy prices.