Gold Prices Surge as US Treasury Eases Liquidity Tightness with Bond Buyback Boost
The US Treasury Department's surprise move to double its limit on long-term bond buybacks has sent gold prices soaring. The department's decision aimed to ease global liquidity tightness, which had been pressuring markets.
As a result of this move, US 30-year Treasury yields fell sharply, from 5.31% to 5.18%, providing a direct tailwind to precious metals under interest rate pressure. Spot gold took advantage of the easing tensions in the bond market and reached $4,458, its highest level since June 5.
In the domestic market, gram gold also climbed to 6,880 liras, breaking a record for the last three months. The rise in gold prices was accompanied by a steep acceleration in silver and palladium, with silver up 2.65% to $65.0080 and palladium climbing 0.3% to $1,293.63.