Gold Miners Buck Yields Surge
Gold miners experienced a surge in value on Thursday, defying the rebound of US Treasury yields. The VanEck Gold Miners ETF rose by 2.3% to 12:40 p.m. ET as Agnico Eagle, Newmont, and Barrick gained around 2-2.2%. Spot gold prices hovered near $4,509 per ounce, creating a divergence between metal pricing and producer equities.
The 30-year US Treasury yield spiked to 5.27% before retreating to roughly 5.25%, following Treasury Secretary Scott Bessent's pledge to at least double long-end bond buybacks above the planned $4 billion. This move aims to address the growing public debt, now exceeding $40 trillion, and an annual deficit approaching $2 trillion.
Experts from DWS, TD Securities, MUFG, and Franklin Templeton characterized these buybacks as tactical rather than structural. They linked yield movements partly to higher oil prices, tying energy costs into real-rate expectations and gold demand.