Gold prices extended their rally on Monday, trading near $4,650 per ounce as concerns over the U.S. fiscal outlook and efforts to control long-term borrowing costs continued to support demand for precious metals.
At 07:51 ET, XAU/USD rose around 1% to $4,649.63 per ounce, while gold futures gained 0.6% to $4,707.89.
Silver edged slightly higher to $69.08 per ounce, while platinum slipped to around $1,878.51. Meanwhile, the U.S. Dollar Index gained approximately 0.2% to 98.96.
Gold Extends Strong Three-Week Rally
Gold has maintained strong upward momentum after gaining more than 5% last week, marking its third consecutive weekly advance.
The precious metal also built on Friday’s 1.9% rise and remains close to its highest level in around three months.
The latest move has been driven largely by growing concerns over U.S. fiscal policy and the Treasury’s decision to increase purchases of longer-dated government debt.
Treasury Intervention Revives the Debasement Trade
The U.S. Treasury’s decision to expand purchases of longer-term bonds helped push yields and the dollar lower.
That development has renewed interest in the so-called debasement trade, where investors seek exposure to hard assets such as gold when concerns rise over the future purchasing power of traditional currencies.
Treasury Secretary Scott Bessent has also suggested that the government could expand its bond buyback program further.
He added that the administration is preparing a new fiscal initiative designed to address the rising cost of government borrowing.
U.S. Debt Concerns Add Support for Gold
Investor concerns extend beyond falling bond yields.
The Treasury’s increasing involvement in the bond market has raised questions about whether policymakers are becoming more willing to influence borrowing costs rather than allowing market forces to determine yields independently.
ANZ analysts noted that these developments have increased concerns about the broader U.S. fiscal position.
Gold’s move above $4,500 per ounce has been supported by expectations that the government may continue attempting to limit longer-term yields.
At the same time, weakness in the dollar has encouraged investors to increase their exposure to bullion.
U.S. Government Debt Tops $40 Trillion
The fiscal backdrop has become increasingly important after total U.S. government debt moved above $40 trillion for the first time.
Meanwhile, the dollar recently dropped to its weakest level in more than three months.
The combination of elevated debt, fiscal uncertainty and a weaker currency has strengthened gold’s appeal as an alternative store of value.
Gold ETF Demand Accelerates
Investor demand for gold has also strengthened through exchange-traded funds.
According to ANZ analysts, gold-backed ETFs recently recorded their largest single-day inflow since September 2025.
The funds have now posted net inflows for five consecutive weeks, suggesting that institutional and retail investors are increasing their exposure to the precious metal.
This renewed ETF demand has added further support to gold’s recent recovery.
Gold Breaks Above Key Technical Level
The technical outlook for gold has also improved.
The metal has moved above its 200-day moving average near $4,513, an important indicator often monitored by traders to assess long-term trend direction.
Holding above this level could strengthen the bullish technical outlook.
If current momentum continues, the next major target watched by traders is around $4,700 per ounce.
Geopolitical Risks Continue to Support Bullion
Geopolitical uncertainty remains another important factor supporting gold prices.
Investors often turn to precious metals during periods of elevated political, economic and financial uncertainty.
Gold has now moved well above the $4,000 level, which previously acted as an important support zone during the market’s earlier correction.
Central-bank purchases and renewed ETF demand have also helped strengthen the recovery.
Central Banks Remain Important Gold Buyers
ANZ analysts said the recent shift in investor positioning reflects a broader push toward diversification as confidence in U.S. financial assets is tested by rising debt and fiscal uncertainty.
The World Gold Council has also emphasized the importance of continued central-bank gold purchases.
Demand from central banks remains an important long-term source of support, particularly as geopolitical tensions and inflation risks remain elevated.
With fiscal concerns growing, ETF inflows accelerating and technical momentum improving, gold could remain firmly in focus as traders watch whether prices can extend their rally toward the $4,700 level.
