Gold is trading near a three-month high as traders assess the U.S. Treasury’s next move following its unexpected bond intervention, which has reignited concerns about fiscal policy.

Gold price Gold rose slightly, approaching $4,680 an ounce. Since the U.S. Treasury increased its repurchase of long-term Treasury bonds, gold has risen for four consecutive trading days, with a cumulative increase of over 7%. This unexpected move has reignited market concerns about rising borrowing costs and put downward pressure on the dollar, making dollar-denominated gold cheaper for many buyers.

U.S. Treasury Secretary Scott Bessant indicated the Fed is prepared to expand its high-cost debt repurchase program, but did not release further signals on Monday. Investors will also be awaiting Federal Reserve Chairman Kevin Warsh's speech at Friday's Jackson Hole annual symposium, where he will clarify the Fed's stance on how to address persistent inflation.

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