Commodities
Gold Prices Surge Amid US Treasury Repurchase Operations
The recent surge in gold prices has sparked debate about its drivers. While some attribute it to safe-haven demand, analysts argue that a liquidity reassessment is underway.
Spot gold prices reached $4,659.96 per ounce on August 24, before trading around the $4,645 per ounce level. This movement is linked to the U.S. Treasury's announcement last week to expand its repurchase operations for long-term Treasury securities.
The U.S. Treasury raised the single-operation cap for buybacks of nominal bonds with maturities of 10-20 years and 20-30 years, effective from September 9 until the end of the current quarter's refinancing cycle.