ع
The Emirates News Agency reported that gold prices gained on the back of a weaker dollar and lower Treasury yields while investors awaited key US jobs data for clues on the Federal Reserve’s policy outlook. Spot gold was 0.5 percent higher at $5048.27 per ounce by 0831 GMT and US gold futures for April delivery gained 0.8 percent to $5072.60 per ounce. A weaker US dollar during recent trading sessions has helped lift the metal according to analysts. The benchmark 10-year US Treasury yields fell to a near one-month low following softer retail sales figures.
According to a Morningstar assessment gold climbed above the $4600 mark for the first time in nearly three months as investors interpreted the US Treasury’s plans to expand bond buybacks as a sign of stress in the fiscal outlook. Gold for December delivery settled up 2.4 percent at $4680.60 a troy ounce marking a weekly gain of 5.5 percent. Silver advanced 2.1 percent to $69.53 an ounce while platinum rose 2.5 percent to $1874.08 an ounce in the same session. The Treasury Department indicated it would at least double its purchases of longer-dated government bonds to ease long-term borrowing costs.
Ole Hansen head of commodity strategy at Saxo Bank said the Treasury’s intervention signaled deeper concerns about the government’s borrowing costs and fiscal position. “The signal matters: attempts to contain borrowing costs without addressing the underlying fiscal imbalance may fuel concerns about financial repression and currency debasement” Hansen said. He added that gold’s ability to rally despite historically elevated long-end yields suggests investors are looking beyond the traditional opportunity-cost relationship and focusing instead on the sustainability of government borrowing.
World Gold Council figures show that physically-backed gold ETFs reversed course in the second quarter of 2026 thanks to heavy selling in June. Global bar and coin investment was broadly unchanged year-on-year but down sharply from the first quarter’s strong performance with first-half demand still ranking among the highest on record. The council’s data places mine production up 2 percent year-on-year to a record 966 tonnes for a second quarter while recycling volumes fell 6 percent mostly due to the quarterly drop in the gold price.
In an analysis published by Kitco News Ewa Manthey commodities strategist at ING noted that fiscal risks have given gold fresh momentum driving prices above $4600 per ounce. Manthey said the latest move followed the US Treasury’s decision to increase its purchases of longer-dated government debt with the maximum size of buyback operations in the 10-to-30-year segment rising from $2 billion to at least $4 billion. She pointed out that renewed dollar weakness and lower short-term yields are contributing to gold’s rebound while softer US data revive expectations that the Fed could start lowering rates in 2027 with the improvement in ETF demand serving as another positive signal.
A PwC review of broader market trends indicated that gold’s performance in 2026 has been shaped by heightened geopolitical tensions and questions over central bank policies across major economies. The metal’s volatility has seen it reach intraday highs above $5500 before correcting lower in subsequent months according to the mid-year outlook from the World Gold Council. Such swings underscore the continued role of bullion as a hedge amid shifting macroeconomic conditions and investor sentiment toward sovereign debt sustainability.
