Last Updated on 24/08/2026
Gold Climbs Above $4,600 as US Treasury Buybacks Pressure the US Dollar
- Gold (XAU/USD) advances toward $4,625 in early Asian trading on Monday.
- US Treasury Secretary Scott Bessent signaled that government bond buybacks could exceed $4 billion.
- Iran has dismissed the prospect of new US sanctions as a “desperate” attempt to pressure Tehran.
Gold prices (XAU/USD) extend their gains to around $4,625 during Monday’s early Asian session, reaching their highest level since May 15. The precious metal is benefiting from renewed weakness in the US Dollar following signals that the US Treasury could expand its bond buyback program.
US Treasury Secretary Scott Bessent said last Thursday that the government could increase Treasury repurchases beyond $4 billion. The comments came one day after the department announced plans to double its purchases of longer-dated government securities.
The prospect of stronger Treasury support at the long end has contributed to lower Treasury yields and weighed on the US Dollar. Since gold is priced in USD, a weaker dollar generally makes the metal more affordable for international buyers, potentially boosting demand.
TD Securities Global Head of Commodity Strategy Bart Melek noted that technical factors are also supporting gold’s advance. He suggested that $4,700 could become the next target if the current momentum persists, while highlighting the decline in the US Dollar as an important driver of the rally.
However, rising energy prices amid persistent tensions in the Middle East could fuel inflation concerns and potentially increase expectations for Federal Reserve rate hikes in the months ahead. Higher interest rates could limit gold’s upside, as the non-yielding asset tends to become less attractive when borrowing costs rise.
Meanwhile, Iranian Foreign Minister Abbas Araghchi rejected the threat of another round of US economic sanctions, describing the potential measures as a “desperate” attempt to pressure Tehran. According to Reuters, he argued that the new sanctions would not succeed in weakening Iran. US President Donald Trump recently announced plans to intensify economic pressure on the Iranian economy.
Treasury Buybacks Provide Support as the Fed Looks Beyond Energy Inflation
TD Securities said indications that the US Treasury intends to support longer-dated bonds could provide additional support for gold and other precious metals. The outlook is further strengthened by expectations that the Federal Reserve may look through a temporary rise in energy prices rather than immediately responding with tighter policy.
This combination could help gold maintain its elevated trading range and leave room for further gains as trend-following investors adjust their positions to the evolving policy environment.
Technical Analysis: Gold Maintains a Bullish Bias Despite Overbought Conditions
On the daily chart, XAU/USD retains a constructive short-term outlook after moving above both the 100-day simple moving average (SMA) and the Bollinger middle band. These levels continue to reinforce the broader bullish trend.
However, the 14-period Relative Strength Index (RSI) stands at 70.81, indicating overbought conditions. This suggests that the recent upside momentum may be becoming stretched, particularly as gold approaches the upper Bollinger band.
On the upside, immediate resistance is located near the upper Bollinger band at approximately $4,675.80. A sustained break above this level could open the way for further gains.
On the downside, the current price zone may provide initial support, followed by the 100-day SMA at $4,379.39 and the Bollinger middle band at $4,305.50. A deeper pullback could bring the lower Bollinger band near $3,935.20 into focus.
WTI Falls Below $85 as Traders Lock in Profits Ahead of New US Sanctions on Iran
- WTI retreats as investors secure gains ahead of tougher US sanctions targeting Iranian oil exports and trading partners.
- Ongoing Middle East tensions and disruptions around the Strait of Hormuz fail to prevent a short-term decline in crude prices.
- WTI maintains a bullish technical outlook while holding above its nine-period and 50-period EMAs.
West Texas Intermediate (WTI) crude oil declines after two consecutive sessions of gains, trading near $84.80 per barrel during Monday’s Asian session. The pullback comes as traders take profits ahead of an expected US announcement on tougher sanctions against Iran.
US Treasury Secretary Scott Bessent said Washington plans to introduce the “toughest” sanctions in history, describing the measures as an unprecedented effort to isolate Iran economically and pressure both Tehran and its trading partners to comply. The move could further tighten global energy supplies as Iranian oil exports face increasing disruptions and shipments to Chinese buyers decline amid the ongoing US naval blockade.
Iran has rejected the planned measures, calling them another unsuccessful attempt to weaken its economy. Iranian officials said the country has extensive experience dealing with blockades and remains capable of maintaining economic activity and international trade ties.
At the same time, geopolitical tensions around the Strait of Hormuz remain elevated. Oil tanker traffic through the key energy corridor continues to run well below historical levels, keeping supply risks firmly in focus.
Strait of Hormuz Risks and Tight Diesel Inventories Support Oil Prices
Commerzbank commodity strategists said developments surrounding the Strait of Hormuz remain a major focus for energy markets as geopolitical risks continue to influence short-term sentiment.
With few major economic reports scheduled, traders are also likely to monitor inventory data closely. Particularly tight diesel inventories could provide additional support for the broader oil market and help underpin Brent prices.
Technical Analysis: WTI Retains a Bullish Bias Despite the Pullback
WTI trades around $84.80 while maintaining a constructive technical outlook. The price remains above both the short-term nine-period and 50-period Exponential Moving Averages (EMAs), indicating that underlying buying interest remains intact.
The 14-day Relative Strength Index (RSI) stands at 56.06, remaining in neutral-to-positive territory. This suggests that bullish momentum is steady without showing signs of being excessively stretched.
On the downside, the nine-period EMA at $83.91 provides the first level of support, followed by the 50-period EMA near $81.62. As long as WTI remains above these technical levels, the broader bullish structure stays intact, with potential dips likely to attract buyers rather than signal a major trend reversal.
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