Treasury Buyback Plan Fuels Gold Rally Above $4,500

Gold prices surged more than 3% on Wednesday, breaking above $4,500 intraday to its highest level since early June. The rally was triggered by a surprise announcement from the U.S. Treasury, which plans to double the size of its liquidity support buyback operations for longer-dated bonds.

The move sent the 30-year Treasury yield down nearly 10 basis points and pushed the dollar index 0.8% lower, sharply reducing the opportunity cost of holding non-yielding bullion.

Spot gold rose 3.6% to $4,487.91 per ounce, while December futures settled 2.8% higher at $4,545.30. Silver, platinum, and palladium also posted strong gains of 4% to 5.1%.