Gold Soars to Two-Half Month High as Treasury Announcement Triggers Dollar Weakness

Gold prices surged over 3% on Wednesday to their highest in two and a half months, reaching $4,491.16 per ounce, as Treasury yields eased and the dollar weakened.

The rebound was triggered by a surprise liquidity support announcement from the U.S. Treasury, which knocked down bond yields and the dollar ahead of the release of the Federal Reserve's July meeting minutes.

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

The U.S. dollar index fell 0.8%, making dollar-priced gold less expensive for holders of other currencies.