Gold Hits Three-Month High; Bitcoin Tops $80,000 as Dollar Softens

Gold and bitcoin advanced together Tuesday as the U.S. dollar weakened and long-term U.S. Treasury yields fell, according to CoinDesk. Spot gold climbed to as high as $4,696.18 per ounce, its strongest level since mid-May. Bitcoin rose above $80,000 for the first time since mid-May, reaching an intraday high of $81,237 before paring gains. The move followed last week's expansion of U.S. Treasury repurchase operations, which shifted market views on liquidity and the fiscal outlook. That change in sentiment helped push the dollar and long-term yields lower. The World Gold Council said gold prices rose by about 3% after the announcement. Gold typically draws safe-haven demand during periods of economic or geopolitical stress. Bitcoin, increasingly treated by some investors as an alternative to fiat currencies, also benefited. Their concurrent strength suggests positioning is rotating toward hard assets. Gold ETF flows turn positive in July Investment demand improved alongside the price rebound. World Gold Council data showed global gold-backed ETFs posted net inflows of $3 billion in July, snapping two straight months of net outflows. Open interest rose by 23 metric tons to 4,068 metric tons, while assets under management increased to $530 billion. The council noted that Europe and Asia led the inflows. Gold prices also ended a four-month streak of declines in July, gaining about 2% for the month. Entering August, attention has intensified around geopolitical and fiscal risks, including the end of the ceasefire between the United States and Iran and the expanded Treasury repurchase operations. Rate expectations have shifted as well. The World Gold Council said markets have largely ruled out a Federal Reserve rate hike in September, with softer recent economic data easing fears of additional tightening and supporting gold. Nansen senior research analyst Jake Kennis told Decrypt that the joint rise in bitcoin and gold alongside a weaker dollar fits hedging behavior against currency depreciation and concerns over fiscal credibility. He added that the correlation is more of a market signal and, by itself, does not yet prove investors have broadly moved away from U.S. Treasuries.