Commodities
Gold Surges to Three-Month High Amid US Treasury Buyback Decision
Gold prices have reached a three-month high of $4,600 after a surprise decision by the US Treasury to double its liquidity-support buybacks for longer-dated government securities.
The move has heightened macroeconomic uncertainty and encouraged traders to seek exposure to the precious metal, which has gained around 13% so far this month.
Uncertainty surrounding the Federal Reserve is also adding to the nervous mood, with recent US employment and inflation data reducing expectations of a rate hike at the upcoming meeting.
The US Dollar Index (DXY) is trading near three-month lows, while long-term US Treasury yields have fallen sharply but recovered most of their losses.