After the United States Treasury expanded its long-term bond buy-back this week, the market's concerns about the fiscal sustainability of the United States and the dollar's credit were raised again. As a result, gold rose for the third consecutive week, rising to a high level since mid-May, re-establishing itself as one of the risk-averse assets of global market interest.
Friday, cash gold rose to $4624 per ounce, a single day increase of over 2 per cent. In a week, the price of money is expected to increase by about 5 per cent this week. Meanwhile, gold is also supported by the fall in the United States dollar index to a three-month low and the fall in long-term United States debt return.
Re-inflow of ETF funds
The flow of funds shows that investors are reproducing gold. On Thursday, the gold ETF warehouse receipts rose by 18 tons a day, the largest single-day increase since September 2025 and is expected to result in a net inflow for the fifth consecutive week.
At the weekly rate, the current rate of inflow is the fastest since January this year. This indicates that, after a previous period of retrenchment, the gold mood is recovering, with some of the funds returning to the precious metals market.
Subsequence needs for simultaneous warming
In addition to spot and ETF, there have been significant changes in the derivatives market. According to Goldman Sachs analyst Lina Thomas, the current rapid increase in the demand for future options for gold means that the market still has a stake in subsequent increases, but that price volatility can increase in both directions.
This round is generally linked to the operations of the US Treasury Department. The United States Secretary of the Treasury, Scott Bessent, indicated on Thursday that the Government was prepared to further scale up repurchases and would launch a dedicated fiscal initiative to address high borrowing costs.
The strategists of Swiss and Saxon Markets have all mentioned that the price of gold is not entirely dependent on the downside. Even though long-term US debt yields remain relatively high, gold remains strong, suggesting that the focus of market transactions has shifted in part to the weakening of the United States dollar and concerns about the fiscal and monetary credibility of the United States.
Return of “currency devaluation” transactions
Another major line that has been reintroduced in the market is the “currency devaluation” transaction. The logic is that gold benefits from the fact that highly indebted economies may rely more on inflation and currency devaluation to maintain their debt-servicing capacity in the face of inadequate fiscal constraints.
The MKS Pamp strategist Nicky Shiels stated that, without policy power, the market itself could not provide enough buyouts and liquidity at the current rate of return, making the “currency dilution” a new course for investors.
However, the increase in gold is not without resistance. The recent rebound of oil prices in anticipation of higher inflation has also kept the market focused on interest rate prospects. It was reported that, following the threat of Trump to increase pressure on the Iranian economy, the prospects for agreements in the Straits of Hormuz were weaker, with oil prices rising markedly this week. If energy prices continue to rise, further increases in gold may be constrained.