Gold Prices Soar as Treasury Boosts Buyback Operations

The price of gold has continued its upward trend after the Treasury Department announced plans to at least double the size of its buyback operations for long-term notes and bonds.

This move is expected to reduce bond yields, which have a negative impact on gold prices as they make bonds more attractive when they offer better returns. Gold currently trades at $4,458.43 an ounce, up 2.9% from Tuesday's levels.

The Treasury Department stated that it was not looking to use buyback operations to 'mitigate episodes of acute market stress', but rather to shore up bond market liquidity.