Gold Nears Three‑Month High as Dollar Softens and Treasury Buybacks Fuel the ‘Debasement Trade’

Gold prices climbed to their highest levels in roughly three months in late August, trading just below $4,600 per ounce as a softer U.S. dollar and an aggressive expansion of Treasury buybacks rekindled what traders call the “debasement trade” – a shift into hard assets amid worries about long‑term currency erosion.

After setting a record above $5,300 in January, bullion had retreated toward the $4,000 area as rising real yields made bonds more attractive. That headwind eased when 30‑year U.S. yields, which had briefly touched a 19‑year high, rolled over on the back of stepped‑up government repurchases. In August alone, gold has gained about 13%, vaulting through key moving averages and putting the metal within striking distance of the $4,600 resistance zone that many technicians watch as a gateway to new highs.

Physical and ETF demand has provided additional support. Chinese and other emerging‑market investors have been steadily adding to bullion holdings as a hedge against volatility in local stock and property markets, while gold‑backed funds have seen their longest run of inflows in months. That combination of macro tailwinds and steady buying has left gold re‑established as a core portfolio hedge, even as day‑to‑day prices remain sensitive to swings in U.S. real yields and the dollar.