Gold Debasement Trade Momentum
The trend of the 'debasement trade' is pushing investors away from bonds and into gold due to historic levels of government debt.
Too little corroboration in the last 3 days to call a trend (11 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"International gold gained more than 5% last week after the U.S. Treasury announced an expansion in purchases of older long-dated bonds. The move fuelled concerns about dollar debasement and helped lift demand for gold."
"the yellow metal continues to trade near its three-month high level, supported by the US Treasury's bond buyback plan. Over the past one month, gold prices have advanced by more than 14%, as the US Treasury Secretary announced plans to double buybacks in long-dated notes in an effort to contain the rising borrowing costs."
"Treasury Secretary Scott Bessent's plan to more than double bond buybacks can boost the price of gold, according to Deutsche Bank. We see the Treasury policy change as underlining the gold constructive view."
"Treasure Yields Fall, Gold Rises On Bessent's $1 Trillion Warning"
"The sharp price move mid-week was ignited by liquidity measures announced by the US Treasury Department to double down on its buyback of longer-dated bonds, he added."
"In the international market, gold prices edged higher on Friday and were on track for a third consecutive weekly gain, supported by a weaker dollar and the US Treasury's bond buyback move, according to a report by CNBC US."
"The yellow metal turned bullish after the US Treasury announced that it would double buyback operations for longer-dated bonds from $2 billion to $4 billion per operation from September 9. The move is expected to provide liquidity support to the long end of the bond market, pushing the 30-year US Treasury yield down from near two-decade highs to around 5.19 per cent and boosting investor interest in gold."
"Typically, in times of distress and market uncertainty, investors run to two places: bonds and gold (GCV26), through the dollar – but today's action in the dollar and gold is a loud 'no confidence' vote in the bond market."
"Treasury Yields Fall, Gold Price Jumps On Bessent Buyback Plan"
"As the US government’s fiscal mismanagement gets closer to 'going off the rails', most Western gold bugs will likely become eager to adopt the winning mindset of their Eastern brethren."