The price of gold has hit a three-month high as the U.S. dollar weakens and investors seek safe haven assets amid increasing market volatility.
The spot price ?of gold was up 1.75% and trading at $4,652.40 U.S. per ounce early on Aug. 21, its highest level since May 15 and on pace for a third consecutive weekly gain.
In the past five trading sessions, gold’s price has risen 4.5% and broken above its 200-day moving average.
The price of gold bullion has been marching higher due to a weakening U.S. dollar and the American Treasury’s recent intervention in the bond market.
Rising yields on both long and short-dated U.S. government Treasurys have put downward pressure on stocks in recent days, sending investors searching for safe haven assets.
Investors are also growing increasingly concerned about the level of America’s national debt, which hit a record $40 trillion U.S. earlier this week.
As a result, gold is now trading above all its key ?moving averages, with the 200-day moving average currently around $4,513.27 U.S. per ounce.
Wall Street views a break above key moving averages as a bullish signal for an asset class, including precious metals such as gold.
U.S. Treasury Secretary Scott Bessent signaled in recent days that he would double buybacks of government bonds to help lower yields.
As a non-yielding asset, gold performs best when interest rates are lower.
Gold’s price hit an all-time high of $5,602.22 U.S. per ounce on January 28th of this year.
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