Gold Breaks Through $4,500 on Treasury Intervention

Gold prices surged to a two-month high on Wednesday, briefly touching $4,525 before easing back to around $4,500. The rally added nearly $200 to gold's value and marked a significant gain for the precious metal.

The sudden increase was attributed to an unexpected Treasury announcement doubling long-dated bond buybacks from $2 billion to at least $4 billion per operation. This move crushed long-term yields and weakened the dollar, making bullion more appealing as a safe-haven asset.

Gold's rise may be short-lived, however, as hawkish Fed minutes showed officials willing to raise rates again if inflation remains stubborn. Markets still price around 67% odds of no September rate hike, but gold slipped below $4,500 after the release.