The price of gold hit its highest level since early June on Wednesday, breaking out of what has been a largely stagnant summer for the precious metal, with analysts crediting the price increase to the Treasury Department's liquidity support announcement and a weakening dollar.
Gold hit its highest price since early June on Wednesday. (AP Photo/Sakchai Lalit)
The price of gold reached a high of $4,557.60 on Friday, up more than 3% to hit its highest level since June 4.
Some analysts have credited the rally in gold’s price to the Treasury Department’s announcement early Wednesday that it would double the size of its liquidity support buyback operations for 10-to-30 year securities.
In a note cited by Reuters, TD Securities said the Treasury’s announcement gave metals a “jolt of life,” saying gold investment could “quickly return amid Treasury liquidity support, a Fed willing to look through an energy shock, and a growing stagflation narrative, which should all ultimately see lower real rates.”
