Gold Surges to Nearly $4,700 Amid U.S. Bond Buyback Plans and Rising Tensions

Spot gold prices have risen to nearly $4,700 during the Asian session on Tuesday, following the U.S. Treasury's announcement of its bond buyback program.

The U.S. Treasury plans to double its long-term bond buybacks, increasing the maximum size from $2 billion to at least $4 billion, and may use part of its roughly $950 billion Treasury General Account (TGA) to finance larger purchases.

This move could put downward pressure on long-term yields, potentially supporting gold prices. Tensions surrounding Iran have also increased expectations for a Fed rate hike at the September meeting to 42.4%, up from 39% last week, according to the CME FedWatch Tool.

In related news, gold ETFs added 18 tonnes on Thursday alone last week, marking their largest single-day increase since September 2025 and a fifth consecutive week of inflows.