Gold rose above $4,650 an ounce on Tuesday, reaching its highest level in more than three months as US government intervention in the bond market revived the debasement trade, an investment strategy based on hedging currency and debt erosion. The trade helped drive gold’s 65% rally in 2025. The US Treasury Department expanded its buyback program for long-dated government debt last week to contain rising borrowing costs. Secretary Scott Bessent said he was prepared to increase the buybacks further and flagged an upcoming longer-term fiscal plan. Markets questioned whether the measures would provide more than a temporary solution, renewing concerns about a US debt crisis, persistent inflation and dollar weakness. Increased inflows into gold-backed exchange-traded funds in recent weeks also pointed to broader market participation and stronger investment demand.