Treasury Buyback Boost Sends Gold Prices Soaring

Gold prices surged to their highest levels in months after the U.S. Treasury announced it would double its bond buyback capacity, effective September 9.

The decision sent yields lower and fueled demand for gold as investors reassessed market conditions.

Gold bullion jumped $100 per ounce in just 45 minutes following the announcement, reaching its highest level since early June at over $4,460 per ounce.

The Treasury's move was a response to weak private demand for long-term government debt, which had been persisting since late June and led to a failed $16 billion 20-year Treasury auction.