Gold prices are hovering near their highest levels in roughly three months, as renewed worries about a weaker US dollar—sparked by the Treasury Department's bold intervention in the bond market—push investors toward alternative assets.

Bullion climbed as much as 0.8% to nearly $4,641 an ounce, extending a winning streak that has now lasted three consecutive weeks. Last week, prices surged over 5% after the Treasury announced an unexpectedly larger expansion of its long-dated bond buyback program, which sent both yields and the dollar tumbling.

This direct effort to control borrowing costs has intensified concerns that US policy could undermine confidence in the dollar, making other investments more appealing. It signals the return of the so-called "devaluation trade," a theme that helped drive gold up 65% in 2025. A softer dollar is generally a positive factor for commodities priced in the currency.

Even after Wednesday's surprise announcement, Treasury Secretary Bessent indicated a readiness to further scale up buybacks of higher-cost debt. He also noted that the government would soon unveil a new fiscal measure aimed at tackling borrowing costs that have hit multi-year highs.

Adding to the bullish sentiment for gold, Ray Dalio, the billionaire founder of Bridgewater Associates, posted on LinkedIn on Friday advising investors to reduce bond holdings and allocate up to 15% of their portfolios to physical gold as a hedge against risks from the US debt crisis.

As of 8:30 AM Singapore time, gold was up a marginal 0.1% at $4,607.86 an ounce, following a 1.9% gain on Friday. Silver slipped 0.1% to $68.99 an ounce, while platinum and palladium also posted slight declines. The Bloomberg Dollar Spot Index was little changed, after dropping to its lowest level in over three months in the previous session.