Gold Just Erased All Its August Gains – Bitcoin Is Holding Up Better at $77K

The Treasury Department's announcement led to major gains for several assets. Gold, though, has lost its own. Financial markets experienced enhanced turbulence in the middle of August after the US Treasury Department’s Scott Bessent announced a major monetary pivot. Bitcoin and gold were among the most significant beneficiaries, posting substantial gains in the first few days. However, the landscape has since changed, especially for the precious metal. What Happened? On August 19, the US Treasury Department said it will at least be doubling the maximum size of liquidity-support buybacks for longer-dated government debt, raising them from $2 billion to $4 billion per operation. This came after the bond market’s notable rise to a 19-year high, as the 30-year Treasury yield touched 5.34% the day before. The impact on financial markets was immediate. The same 30-year Treasury yield corrected to 5.2%, while gold, stocks, and crypto rocketed. The precious metal went from $4,360/oz to $4,530/oz in hours. It kept surging in the following days and skyrocketed to $4,700 per ounce on August 25, which became its highest price tag in over three months. Bitcoin also reached a similar local peak,...