Gold Rises Above $4,500 on Treasury Buyback Announcement

Gold prices surged to their highest level since early June on Thursday, reaching $4,525.79 after the U.S. Treasury announced larger buybacks of longer-dated debt.

The move pushed bond yields lower and weakened the dollar, reducing the opportunity cost of holding bullion and driving gold above $4,500 for the first time in months.

According to Reuters, the 3.6% increase in gold prices on Wednesday was largely due to the Treasury's decision to double its buybacks of longer-dated debt, which caused yields to fall even more.

The Fed minutes from July were hawkish, showing that several policymakers remain concerned about inflation and are still open to additional tightening.