Gold Prices Remain Above $4,500 Amid Weaker Dollar and Treasury Buybacks

Gold held firmly above the $4,500‑per‑ounce level on Friday, with the spot XAU/USD price edging 0.03 % higher to $4,520.71 at 22:12 ET (02:12 GMT). Gold futures rose 0.1 % to $4,576.51, while silver (XAG/USD) gained 0.5 % to $68.43 an ounce and platinum (XPT/USD) jumped 1.7 % to $1,867.71. The U.S. Dollar Index slipped 0.1 % to 98.77, contributing to a weekly rally that has lifted gold roughly 4 % and placed the metal on track for an August gain of more than 11 %.

The Treasury announced it will double its buybacks of longer‑dated Treasury securities to at least $4 billion per operation for the next quarter. Treasury Secretary Scott Bessent indicated the purchases could be increased further, arguing that current yields do not reflect underlying economic fundamentals. The resulting decline in long‑term yields reduces the income foregone by holding non‑interest‑bearing gold, thereby removing a key macro headwind.

A weaker dollar, now heading for a weekly decline of over 0.8 %, has further boosted bullion demand as the metal becomes cheaper for holders of other currencies. Recent U.S. labor data showed weekly jobless claims slipping, suggesting a relatively stable labor market despite a July employment surprise, keeping the Federal Reserve focused on inflation containment. Market pricing on the CME FedWatch tool reflects a 64 % probability that the Fed will leave policy rates unchanged in September and a 36 % chance of a hike; higher rates typically weigh on gold because they raise the return on interest‑bearing assets.

Fed officials have warned that the Treasury’s aggressive debt‑management strategy could interact with monetary policy by easing financial conditions even as the Fed seeks to curb inflation. On the geopolitical front, Secretary Bessent announced that the United States will impose what he described as the “toughest sanctions” in history on Iran, a move that could affect broader risk sentiment.

ANZ analysts noted that the week’s price action reinforces gold’s appeal as investors diversify away from the dollar and U.S. assets. They highlighted that the metal’s break above $4,500 was driven by expectations of continued Treasury efforts to manage long‑term yields, which in turn pressure the dollar and support bullion demand.