Gold Holds Near $4,530 as Treasury Buybacks Boost Weekly Gains

Gold prices hovered near $4,530 per ounce on Friday, August 21, 2026, poised for a third consecutive weekly gain as a weakening U.S. dollar and strategic Treasury debt operations sustained upward momentum. The precious metal has risen approximately 4% over the current week and surged more than 11% throughout August, maintaining its position above the $4,500 threshold.

The rally has been significantly fueled by the U.S. Treasury Department's decision to double the size of its repurchase program for long-maturity government bonds. Earlier in the week, the Treasury announced plans to increase buybacks of 10- to 30-year debt to at least $4 billion per transaction for the upcoming quarter, up from $2 billion. This move triggered a decline in long-duration bond yields and applied downward pressure on the dollar. On Thursday, Treasury Secretary Scott Bessent indicated the administration could expand these operations further, stating that prevailing yields do not accurately reflect underlying economic fundamentals.

The compression of government bond yields has enhanced gold's relative appeal, as investors sacrifice less potential income by choosing non-yielding bullion over...