Gold Surges 10% in August, Bitcoin Rallies 12% as Treasury Buybacks Pressure Dollar

Forecast Trend Report by Period

Expanded U.S. Treasury buybacks of long-dated bonds are fueling concern over dollar weakness, lifting alternative stores of value in tandem. Gold has surged 10% in August, while Bitcoin has climbed 12%.

Bloomberg reported on Aug. 30 that spot gold was up about 10% this month and was on track for its biggest monthly gain since January. Bitcoin has also risen 12% since Aug. 19, breaking out of a months-long trading range and briefly topping $80,000.

The rally in gold and Bitcoin has been driven by the Treasury Department's expanded purchases of long-term debt. Treasury Secretary Scott Bessent recently said the government would at least double its purchases of outstanding Treasuries with maturities of 10 to 30 years. As the Treasury moved to contain increases in long-term yields, the dollar came under pressure. Investors then turned to gold and Bitcoin as hedges against a decline in purchasing power.