Gold Hits Record Highs; $58 Million Options Bet Signals Pullback

Bloomberg's Eric Balchunas notes record inflows of $7b into gold and Bitcoin ETFs in a week, outpacing AI-related funds. SPDR Gold Shares (GLD) and BlackRock's iShares Bitcoin Trust (IBIT) led the surge, ranking among the top 10 most-traded ETFs. IBIT's year-to-date flows turned positive. The 'debasement trade' is gaining attention amid U.S. debt concerns and a weaker dollar, with Bitcoin surpassing $80,000 and gold also rising.

Gold and silver prices rose after the U.S. Treasury announced plans to double long-dated T-bill buybacks, lowering long yields and weakening the dollar. Gold reached $4,662.71, its highest since early June, while silver briefly hit $70/oz. The Bank of Korea invested in gold ETFs, and Indian silver imports rebounded under new regulations. Analysts note that sustained gains depend on real yields and Fed policy.

Gold prices rose above $4,500, surpassing a key resistance level of $4,380, according to 22V Research. The move followed a brief Treasury bond intervention. Gold's rally coincides with reduced expectations of a Fed rate hike in September, with probabilities falling to around 35%. The SPDR Gold Shares (GLD) tracks gold's performance.

Gold, represented by SPDR Gold Shares (GLD), rose 3% after the U.S. Treasury doubled its long-dated bond buybacks, reducing yields and weakening the dollar. The move, seen as a signal to control long-term yields, was unexpected and boosted gold. Traders debate the impact, with some predicting further bond selloffs. Peter Schiff suggests buying gold and selling Bitcoin, though Bitcoin rose 5%.

Gold and silver prices surged after the US Treasury announced doubling its buybacks of long-term bonds, reducing yields and boosting bond prices. Gold rose $100 to $4460 per ounce, while silver rebounded above $65. The SPDR S&P500 ETF (SPY) and GLD gold ETF also gained. The Treasury's move aims to support liquidity, impacting markets and housing.

ETF.com data shows $15.3 billion of net inflows in one day. SPY led with $4.13 billion, followed by IVV ($2.71B) and QQQ ($1.84B). GLD drew about $636.9 million. DIA and XLI also saw inflows. Semiconductor ETFs had redemptions, with SOXX down $1.16B and SMH down $402.9M. VTI led outflows at $2.18B.