By Yihui Xie

(Bloomberg) -- Gold traded near a three-month high after the US Treasury's bold intervention in the bond market revived concerns about a weaker dollar and pushed investors toward alternatives.

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Bullion climbed as much as 0.5% to above $4,620 an ounce in early trading, building on a third weekly gain. The metal powered more than 5% higher last week after the Treasury announced a surprise ramp-up in buybacks of long-dated government debt, driving yields and the dollar lower.

The efforts to control borrowing costs through direct intervention stoked concerns that US policy could weaken faith in the dollar and make other investments more attractive, a return to the so-called debasement theme that helped drive gold's 65% rally in 2025. A softer greenback is a tailwind for commodities priced in the currency.

Even after the unexpected announcement on Wednesday, Treasury Secretary Scott Bessent went further by saying he's prepared to expand buybacks of costlier debt. He also flagged that the administration would soon unveil a fiscal initiative to address the highest borrowing costs in years.

Further driving confidence in gold, Ray Dalio, the billionaire founder of Bridgewater Associates, said in a LinkedIn post Friday that investors should reduce their bond holdings and put as much as 15% of their money in bullion to hedge against the risk of a US debt crisis.

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Gold rose 0.1% to $4,608.01 an ounce at 7:10 a.m. in Singapore, having added 1.9% on Friday. Silver was flat at $68.97 an ounce. Platinum and palladium edged lower. The Bloomberg Dollar Spot Index, a gauge of the dollar, was little changed after dropping to its lowest in more than three months in the previous session.

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