Gold Hits Three-Month High as Bitcoin Tests $80,000

In brief

• Gold climbed toward $4,700 an ounce Tuesday, reaching its highest level since mid-May.
• Bitcoin crossed $80,000 for the first time in three months as the dollar weakened.
• Gold-backed ETFs recorded $3 billion in net inflows in July after two consecutive months of outflows.

Gold climbed to a three-month high Tuesday, extending its August rally as a weaker dollar and falling Treasury yields boosted demand for the precious metal.

Spot gold reached $4,696.18 an ounce, its highest level since May 14, before pulling back. Bitcoin rallied alongside gold, climbing above $80,000 for the first time since mid-May and reaching $81,237 before giving back some of its gains.

The rallies come as the dollar and long-term Treasury yields have fallen following the Treasury Department's expansion of bond buybacks last week. Gold jumped 3% after the announcement, according to a recent report by the World Gold Council.

Demand for gold investment products had already started to recover. Global gold-backed exchange-traded funds recorded $3 billion in net inflows in July, reversing two consecutive months of outflows, according to the World Gold Council. Holdings increased by 23 metric tons to 4,068 tons, while assets under management rose 1% to $530 billion.