Gold Surges Above $4,500 as US Treasury Buyback Plan Takes Hold

Gold prices have surged above $4,500 per ounce as investors seek safe-haven assets amidst economic uncertainty. The move comes after the US Treasury announced a bond buyback program aimed at improving liquidity in the government bond market.

The buyback plan involves repurchasing older, less liquid securities to support bond prices and potentially influence interest rates. This policy shift has led to a softer dollar and lower yields, making gold more attractive as an investment.

Spot gold rose 0.6% to $4,512.30 per ounce as of 10:45 a.m. ET, extending its gains from the previous session. Analysts note that the buyback program signals a more accommodative stance, which reduces the opportunity cost of holding non-yielding assets like gold.

Market strategists suggest that the success of the buyback program in stabilizing the bond market will be key to sustaining gold's momentum. If the program leads to a sustained decline in real yields, gold could test new all-time highs in the coming months.