Gold and bitcoin surge after US bond market selloff; UK economy on ‘firmer footing’ - as it happened

Gold has rallied to a three-month high – and like bitcoin ( see earlier post ) it is partly down to a fall in the value of the US dollar and a selloff in bond markets.

The safe haven asset had climbed 1.31% this afternoon to $4,575 , having reached $4,601 earlier in the day – its highest since 15 May.

It comes after government borrowing costs around the world surged to the highest levels in decades amid growing fears over US bond market turmoil.

Anxiety about Donald Trump’s handling of the economy, and concern that his war with Iran is driving up inflation, have sparked a sell-off in the US bond market.

US Treasury Secretary Scott Bessent signalled on Thursday that he could ramp up government bond buybacks even further.

That came after the department announced on Wednesday it would double the size of its buybacks on longer-dated securities , sending the 30-year yield sharply lower.

The US dollar’s slide boosted the precious metal further. The dollar was 0.01% down against the pound at 73.3p and 0.04% down against the euro at 85.5 cents on Friday afternoon.

For anyone who missed the drama in the US bond market earlier this week – or who is simply scratching their head about what it means – here’s a handy explainer:

Ole Hansen , head of commodity strategy at Saxo Bank , wrote:

double quotation mark Gold surged again after a setback on Thursday as long-end Treasury yields climbed following a Bessent interview that failed to quell investor concerns about spiralling U.S. debt and fiscal sustainability.”