Story perspectives

U.S. Treasury Doubles Bond Buyback, Gold Hits Record $4,676

8/26/2026

Summary

Story summary

U.S. Treasury Department doubled its long-term bond buyback program, pushing gold above $4,600 per ounce.
Spot gold reached $4,676.75 per ounce on August 25, its highest since May 14, 2026.
Gold-backed ETFs recorded inflows of 46.7 metric tonnes ($6.4 billion), the largest weekly demand in ten months.
Traders raised the probability of a Federal Reserve (Fed) rate hike in September to 38% after the data.
July PCE price index rose 3.7% year-over-year, matching expectations.

History

Historical Context

Bretton Woods (1944) pegged gold at $35/oz, but U.S. deficits and the 1968 London Gold Pool collapse weakened the system. On August 15 1971 President Richard Nixon ended dollar-gold convertibility, the Treasury sold $2 billion of gold, and prices rose above $70/oz by 1972. Today's $4,600-plus level reflects that 1971 market shift and fuels expectations of tighter policy.

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Story summary

U.S. Treasury Department doubled its long-term bond buyback program, pushing gold above $4,600 per ounce.
Spot gold reached $4,676.75 per ounce on August 25, its highest since May 14, 2026.
Gold-backed ETFs recorded inflows of 46.7 metric tonnes ($6.4 billion), the largest weekly demand in ten months.
Traders raised the probability of a Federal Reserve (Fed) rate hike in September to 38% after the data.
July PCE price index rose 3.7% year-over-year, matching expectations.

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