Gold Prices Soar as US Treasury Announces Bond Buyback Plan

Gold prices surged more than 3% on Wednesday after the US Treasury announced it would double the size of its liquidity-support buyback operations for longer-dated bonds. This move pushed Treasury yields and the dollar lower, boosting demand for gold.

The 30-year Treasury yield dropped over eight basis points to 5.20%, while the 10-year yield declined nearly five basis points to 4.660%. Spot gold rose 3.7% to $4,495.02 an ounce, its highest level since June 4.

Industry expert Robert Gottlieb described the move as 'totally unexpected' and 'very bullish for gold due to lower yields on longer-dated Treasuries and as it may help to bring the dollar lower.'