Treasury Buyback Sends Gold Prices Soaring Above $4,500

Gold prices held steady above $4,500 an ounce after a surprise move by the US Treasury to rein in long-term borrowing costs. The department announced it will increase buybacks of long-dated government debt by at least double, signaling its intention to lower borrowing costs. This decision comes as yields hit multi-decade highs.

The Treasury's move is expected to ease financial conditions and lower the opportunity cost of holding gold. However, further gains in the metal may be tempered by inflation pressure from energy-led price increases.