Treasury Secretary Scott Bessent’s plan to more than double bond buybacks could boost gold prices, according to Deutsche Bank analyst Michael Hsueh. The recent Treasury announcement on increasing buyback operations from $2 billion to $4 billion, funded by the General Account, has already driven gold up over 5% last week—the longest rally since October. Hsueh warns this policy shift may push gold above his $4,800 per ounce target, a nearly 3% increase from recent settlement levels. “The Treasury’s policy change reinforces our bullish outlook on gold,” he noted in a recent client note. Gold also gained more than 1% in Monday’s trading session following the announcement.
@GC.1 1M mountain Gold Comex, 1-month Gold’s rally on the back of last week’s Treasury buyback announcement underscores the role of future policy moves on hard assets, Hsueh said. Bessent saying he has a “big toolkit” is one sign that more such intervention could be coming, he added.
Hsueh’s bullish stance aligns with broader market sentiment. Bridgewater Associates’ Ray Dalio echoed similar views, advising investors to maintain an overweight position in gold to hedge against potential debt crises from government borrowing. The billionaire recommended allocations of 10% to 15% of portfolios to the metal. In 2025, gold’s price surged to its highest since 1979, driven by easing monetary policy, increased central bank purchases, and robust inflows into gold-focused ETFs.
