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Gold prices hover near three-month highs as a weaker U.S. dollar and Treasury bond buybacks support the precious metal's rally.

Gold prices remained near their highest levels in more than three months on Tuesday, supported by a weaker U.S. dollar and the U.S. Treasury's bond buyback plans. Spot gold fell slightly to $4,632.39 per ounce, yet it remains on track for its strongest monthly gain since September 1999. The rally is driven by lower Treasury yields, which reduce the opportunity cost of buying bullion, and a softer dollar making gold more attractive to holders of foreign currencies. Analysts credit the Treasury Department's decision to ramp up buybacks of long-dated government debt for the sustained late-summer rally. While gold is viewed as a safe-haven asset, its future price depends on the U.S. dollar remaining under pressure and Treasury yields stabilizing. Investors are now looking toward upcoming economic indicators and a speech by Fed Chair Kevin Warsh at the Jackson Hole Symposium to determine the outlook for interest rates. Higher interest rates typically depress metals prices, while a dovish surprise at the symposium could be ultra-bullish for gold.

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