Gold Climbs to $4,700 Amid US Treasury Buybacks and Inflation Concerns

Gold's Resilience Amid Fiscal Uncertainty Gold edged higher, closing at $4,657.17 an ounce on Tuesday after an earlier spike that pushed prices to $4,700, the highest intraday level since mid‑May. The rally was sparked by US Treasury buybacks that lowered long‑dated yields, easing inflation fears and boosting non‑interest bearing gold, which has advanced almost 8% in the past week. Analysts now project the metal to hit $5,000/oz by year‑end as concerns over US debt levels and Fed policy persist.

Investor Sentiment & ETF Dynamics Investor enthusiasm for gold has translated into record ETF flows, with bullion‑backed funds adding more than 28 tons last week – the most since January. The 25‑delta call skew for the largest gold ETF has also risen, signalling that traders are willing to pay for upside exposure. Fidelity Holdings has doubled its gold holdings in the past three weeks, following a Fed meeting that left rates unchanged and prompting a retreat from long‑dated Treasuries.

Trade Tensions & Market Outlook Global trade tensions add another layer of uncertainty. The US has threatened economic sanctions against countries doing business with Iran, while a trade war with Canada has escalated after talks broke down. Meanwhile, the Bloomberg Dollar Spot Index slipped 0.1%, silver fell 0.4% to $68.66 an ounce, and platinum and palladium declined. Market participants are watching Fed Chair Kevin Warsh’s remarks at the Jackson Hole forum to gauge how the Federal Reserve will respond to stubborn inflation.