Gold-backed ETFs added 46.7 metric tonnes of bullion worth roughly $6.4 billion in a single week, the strongest weekly inflow in ten months. The surge lands as spot gold trades near its $4,696.18 peak, less than $4 from the $4,700 level, with North America and Europe driving the buying.
Gold-backed ETFs took in approximately $6.4 billion last week, adding 46.7 metric tonnes of bullion to their holdings. It marks the largest weekly inflow in ten months. North America and Europe supplied most of the demand, according to the report.
Spot gold nears $4,700
Spot bullion reached $4,696.18 per ounce on August 25, its highest level in more than three months, before pulling back. By the pre-Asia session, spot XAU/USD was trading around $4,640-$4,655 per ounce, consolidating after the pullback from the multi-month peak. The metal had already climbed above its 200-day moving average and broken several technical resistance levels the previous week, which attracted additional momentum buying.
Treasury stress and a weaker dollar add support
Long-term Treasury yields climbed to multi-year highs on concerns over persistent inflation, large federal deficits and rising debt-service costs. The Treasury then announced an expansion of its long-term bond buyback program, a move that helped push the 10-year yield toward roughly 4.65% and the 30-year yield back toward 5.18%. Lower yields reduce the opportunity cost of holding non-yielding bullion. The Treasury announcement also pressured the dollar, and a weaker dollar makes gold cheaper for buyers using other currencies.
China added another source of demand: net gold imports through Hong Kong rose approximately 11% in July compared with June.
PCE data and Jackson Hole loom next
Markets are now waiting on the Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge. Fed Chair Kevin Warsh is also scheduled to speak at Jackson Hole. A softer PCE reading would likely support gold if yields and the dollar move lower, while a stronger reading complicates the picture by raising the odds the Fed holds rates higher for longer.
Sources: Crypto Daily, MQL5
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