Gold and Silver Prices Surge on Treasury Buybacks and Dollar Weakness

The price of gold and silver surged on Wednesday due to a boost from Treasury buybacks and dollar weakness, despite hawkish undertones from Fed minutes. Spot gold rose by 4.33% to $4,521.00 per ounce, while spot silver climbed 5.29% to $66.550.

The Treasury's move to increase buybacks of long-dated bonds impacted the segment of the curve that had weighed on metals throughout the week. The 10-year Treasury yield slipped toward the 4.6% zone, and the dollar weakened.

Fed minutes revealed that several officials backed a 25-basis-point rate increase at the July meeting, but market pricing for a September hike stood near 56%. Diminished real-rate pressure outweighed the hawkish undertone, allowing precious metals to break through significant resistance levels.