Gold Skyrockets on US Treasury Bond Buyback Announcement

Gold prices surged more than 3% on Wednesday as a US Treasury announcement on longer-dated bond buybacks pushed Treasury yields and the dollar lower, boosting demand for the non-yielding metal.

Spot gold rose 3.7% to $4,495.02 an ounce, after touching $4,498.69 earlier in the session. That was the highest level since June 4. US gold futures gained nearly 3% to $4,552.

The move came as the Treasury said it would double the size of its liquidity-support buyback operations for longer-dated bonds.