⚡ Gold soars toward $4,500 as Treasury buyback sinks US yields

Gold surged over 3.70 percent on Wednesday, pushing toward $4,500 per ounce as the US dollar weakened alongside falling Treasury yields. The dramatic rally comes in direct response to the US Treasury’s buyback program targeting long-dated bonds, which has driven yields lower and reduced the opportunity cost of holding non-yielding assets like gold. The XAU/USD pair reached $4,495 during Wednesday trading, marking its highest level since June 4.

The Treasury buyback operation is effectively removing long-duration debt from the market, compressing yields and undermining dollar strength. This creates a favorable environment for gold, which benefits from both dollar weakness and lower real yields. Traders and brokers should monitor the scale and frequency of future Treasury buyback announcements, as continued intervention could sustain gold’s momentum. The move affects currency markets, precious metals traders, and bond portfolios across institutional and retail segments.

FXnCO Insight

Gold’s technical breakout above recent ranges, combined with ongoing Treasury intervention, suggests continued upside potential for long positions while dollar-denominated assets face headwinds.

Source: FXStreet