The U.S. already owes $40 trillion: Central Banks are increasingly turning to gold
U.S. government debt has exceeded $40 trillion for the first time, once again raising investor concerns about the sustainability of American public finances. At the same time, yields on long-term U.S. government bonds recently climbed to levels near their highest in almost 20 years, while the U.S. Treasury had to increase its buyback operations to support market liquidity.
Against this backdrop, gold (XAUUSD) received a new boost. On August 19, XAUUSD rose by more than 4%, while on August 20 the price climbed as high as $4,527 per ounce — its highest level since early June.
According to FreshForex analysts, the key factor for XAUUSD right now is not so much short-term price dynamics as the changing structure of global reserves.
