
Gold gains momentum above $4,600 on US Treasury buyback plans
Gold gains momentum above $4,600 on US Treasury buyback plans
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Gold gains momentum above $4,600 on US Treasury buyback plans

Silver tested $70 as Treasury buybacks weakened the dollar and pushed yields lower. The 200-day moving average is now the next target.

US long-end yields backed up late last week despite Treasury announcing larger buybacks of longer-dated bonds and Scott Bessent promising plans to consolidate the US fiscal trajectory. Yet rather than reigniting the dollar selloff, traders appear willing to give the Treasury Secretary the benefit of the doubt for now.

Euro holds steady against US Dollar amid US debt strategy

USD/JPY near 159 is testing Yen bulls as Natixis and MUFG back a September BoJ hike, with Himino and US inflation data next in focus. The US Dollar to Japanese Yen (USD/JPY) exchange rate ended Friday at 158.98, almost five Yen below July's peak near 164 but still uncomfortably high for Tokyo after the latest policy response.

The Gold price has broken above $4,600 as US bond-market intervention revives debasement fears, with Goldman seeing policy volatility supporting safe havens. The Gold price in US Dollars (XAU/USD) finished Friday around $4,604 an ounce after a striking acceleration in the second half of August.

Exchange Rates UK Research's latest August 2026 survey of major investment banks points to a gradually stronger Euro-to-Dollar exchange rate through 2027, although the near-term consensus remains cautious. With EUR/USD currently around 1.1677, the median forecast falls to approximately 1.15 in Q3 2026 before recovering to around 1.165.

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Last week's main theme has been a shift away from the US dollar towards currencies of economies with stronger fiscal positions and lower debt levels. The brief rally in long-dated US Treasuries helped fuel gains in gold and silver, while the Swiss franc also benefited from increased haven demand.

The Australian dollar not only rallied for an eighth consecutive week – its best run since December 2020 – but the move also accelerated to mark its strongest week in 18. AUD/USD now sits within striking distance of 72c at an 11-week high.

The Gold and oil prices rose as the US Dollar weakened despite high US yields, pointing to inflation risk and growing unease over the US fiscal outlook. Brent crude ended the week above $94 a barrel, while the gold price climbed through $4,600 and the US Dollar slipped to a three-month low against the Euro.

The Japanese yen notched up a rare win against the US dollar last week, aided by the very same forces that have contributed to its persistent weakness over recent years.

Currency analysts lift their near-term EUR/USD view and bring forward a 1.18 target as US debt-market worries put the US Dollar back on the defensive. The Euro to Dollar (EUR/USD) exchange rate ended the week around 1.1677 after a sharp mid-week jump carried the pair as high as 1.1711.