Gold Breaks Above $4,600 on US Treasury Buyback Program, Momentum Builds

Spot gold extended its strength in early Asian trading on Monday, trading near $4,635, after earlier rising to $4,625, the highest level since May 15. The ongoing expansion of the US Treasury's long-dated bond buyback program has weighed on the dollar, providing direct support for dollar-denominated gold.

**How the Treasury Buyback Program Transmits to Gold Prices**

The US Treasury announced on Wednesday it would double the size of its long-dated bond buybacks, aiming to improve market liquidity. Treasury Secretary Bessent said the government may further expand the buyback scale. This move has pressured the dollar while intensifying concerns over US debt sustainability. According to reports from Juheng News, lingering investor worries over rising debt levels have driven funds toward gold as a safe haven. Market sources indicate that after breaking above $4,450, gold has continued its rally, with $4,600 becoming the new key battleground.

**Technicals and Institutional Views Align**

On the technical front, spot gold has broken above its 200-day moving average of around $4,513, with prices holding above major moving averages, triggering inflows from trend-following funds and further strengthening bullish momentum. According to reports from Feifan Finance, Goldman Sachs has raised its gold long position to 60%, with a target price of $5,500. However, market analysts also note that for gold to challenge $5,000 further, the Fed's policy stance will be a key catalyst. Since gold yields no interest, interest rates and Treasury yield trends remain important variables influencing gold prices.

**Jackson Hole Signals in Focus**

The market's next focus will be on Fed policy signals from the Jackson Hole global central bank symposium. As of press time, spot gold was trading near $4,635, and whether it can hold above $4,600 will determine the sustainability of this rally. If it fails to hold, short-term profit-taking could trigger volatility. Other precious metals moved higher in tandem, with spot silver, platinum, and palladium all posting gains of varying degrees.