Spot gold rose to a three-month high following the U.S. Treasury's decisive move in the debt market, which has reignited worries over a softening dollar and nudged investors toward alternative assets.

The precious metal advanced as much as 1% to surpass $4,649.92 an ounce, extending its winning streak to a third week. Last week, bullion surged more than 5% after the Treasury unveiled an unexpected expansion of buybacks targeting long-dated government bonds, a step that pushed yields and the greenback lower.

This direct effort to curb borrowing costs has fueled concerns that American policy could erode confidence in the dollar while making other investments more appealing—a revival of the so-called debasement trade that underpinned gold's remarkable 65% surge in 2025. A weaker dollar typically provides a boost to commodities priced in the currency.

Following Wednesday's surprise announcement, Treasury Secretary Scott Bessent signaled a willingness to go further, pledging to broaden buybacks of higher-cost debt. He also hinted that the administration would soon roll out a fiscal package aimed at tackling the steepest borrowing expenses seen in years.

Adding to gold's allure, Ray Dalio, the billionaire founder of Bridgewater Associates, took to LinkedIn on Friday to advise investors to trim their bond exposure and allocate as much as 15% of their portfolios to bullion as a safeguard against a potential U.S. debt crisis.