DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Gold powered to a third consecutive weekly advance, smashing through $4,600 per ounce as anxiety over federal borrowing, dollar weakness and surprise Treasury intervention drove investors toward hard assets. The metal closed near its weekly peak after gaining more than 5 percent.

Spot gold began the week at $4,381.12 per ounce before briefly losing momentum as Treasury yields climbed and the dollar remained firm. Prices touched a weekly low of $4,324.49 early Wednesday, but the retreat quickly gave way to an explosive reversal.

The catalyst arrived when the Treasury announced plans to double buybacks of government securities with maturities ranging from 10 to 30 years to at least $4 billion per operation. The move pushed longer maturity yields lower for a time while magnifying concerns about federal debt approaching $40 trillion.

Gold surged beyond $4,500 as the dollar weakened and markets interpreted the intervention as evidence of mounting stress in government finance. The rally continued after Federal Reserve minutes suggested policymakers remained concerned about inflation but were unlikely to raise rates again soon.

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Friday brought another burst of buying despite stronger services data and rising yields. Spot gold reached $4,632.14 before finishing the week above $4,600, a level that had previously represented major technical resistance.

“Gold rose for the third consecutive week,” said Marc Chandler, managing director at Bannockburn Global Forex. He added, “A convincing move above $4600 targets the $4680 area.”

Chandler warned that momentum indicators are stretched, leaving gold vulnerable to consolidation or a technical reversal. Still, the latest Kitco News Gold Survey found no bearish analysts on Wall Street after the powerful breakout.

Eight of the 11 participating analysts, or 73 percent, expected gold to climb further during the coming week. The remaining three anticipated consolidation, while not one analyst forecast a decline.

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Main Street displayed even stronger conviction, with 164 of 211 retail respondents, or 78 percent, predicting higher prices. Only 12 percent expected a drop, while 10 percent looked for sideways trading.

“Up,” said Darin Newsom, senior market analyst at Barchart.com. “The bottom line is, as my Rule #6 reminds us, fundamentals win in the end, and as long as central banks around the world continue to buy, gold is fundamentally bullish.”

Adam Button, head of currency strategy at investingLive, was equally blunt. “The U.S. 'strong dollar' policy is dead and Bessent is flailing.”

Adrian Day, president of Adrian Day Asset Management, argued that the Treasury maneuver may deliver only temporary relief to the bond market. “Bessent has decided to attempt to save the bond market at the expense of the dollar,” Day said, “and this is positive for gold.”

Rich Checkan, president and chief operating officer of Asset Strategies International, said the government is effectively purchasing existing obligations by creating additional obligations. “More U.S. dollars chasing a finite amount of gold means only one thing… higher prices.”

Kevin Grady, president of Phoenix Futures and Options, said Treasury intervention overwhelmed every other market driver. “It's all about the bonds right now,” he said. “That's the whole story.”

Grady said rising open interest and the arrival of new long positions suggest precious metals demand is becoming more durable. However, he wants confirmation from inflation, energy markets and Federal Reserve policy before fully embracing gold above $4,600.

The coming economic calendar could provide that confirmation, beginning with consumer confidence and new home sales on Tuesday. Wednesday brings the Core PCE Price Index, revised second quarter gross domestic product and durable goods orders, followed by weekly jobless claims on Thursday.

Friday will place Fed Chair Kevin Warsh at center stage during his Jackson Hole address, where traders will search for clues about the next policy move. Markets will also receive preliminary payroll benchmark revisions and the University of Michigan’s final August consumer sentiment reading.

Lukman Otunuga, manager of market analysis at FXTM, said falling yields and a softer dollar have opened the path for additional gains. “A weaker dollar remains gold’s clearest tailwind, and this week's explosive price action reflects that directly,” he said.

Technical conditions also remain constructive, with gold trading firmly above its 200 day moving average. Otunuga said a decisive close above $4,600 could clear the way toward $4,700, while weakness beneath $4,500 could expose the $4,390 area.

At the time of reporting, spot gold traded at $4,602.99 per ounce, up 5.27 percent for the week and 1.86 percent for the day. With federal debt costs climbing, confidence in the dollar fading and official bond support expanding, the gold bulls now control the field while Wall Street’s bears have disappeared.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.