Gold Prices Soar Above $4,500 on US Debt Concerns
Gold prices surged on Wednesday, breaking above $4,500 per troy ounce for the first time since early June. This was triggered by the US Treasury's announcement that it would more than double the volume of buybacks of long-term US government bonds with maturities of 10 to 30 years.
The move aimed to calm the bond market and reduce yields, which had risen sharply in preceding days due to concerns about debt levels. However, this measure has led to a decline in confidence in the US dollar as a safe haven, causing investors to demand higher yields for US government bonds.
Gold is benefiting from this trend, with strong inflows into gold ETFs recorded on Wednesday. Holdings in these funds increased by 18 tons, their strongest daily gain since September 2025. This surge was also driven by the weaker dollar and rising inflation risks.