Gold Surges Past $4,500 as US Treasury Yields Plummet

Gold prices surged to nearly a two-month high on August 20, reaching $4,527.12 before pulling back intraday.

The sharp decline in long-term US Treasury yields drove the surge, with the 30-year yield climbing near highs not seen since 2007.

The US Department of the Treasury announced it would double its long-term Treasury buyback program to enhance bond market liquidity.

As a result, long-term US Treasuries rebounded sharply, with the 30-year yield pulling back to around 5.19% and the 10-year Treasury yield dropping to near 4.64%.

The drop in Treasury yields provided a significant boost to gold, reducing its opportunity cost and putting downward pressure on the US dollar.