Treasury Intervention Triggers Gold Price Surge

Treasury Intervention Sends Gold Prices Soaring

Brien Lundin, editor and publisher of Gold Newsletter, attributes the recent surge in gold prices to a notable Treasury market move. Long-term U.S. Treasury yields had climbed sharply, with the 30-year yield reaching its highest level since 2007. In response, the Treasury announced it would at least double the size of certain buyback operations for longer-dated securities.

Lundin notes that while the amounts involved are relatively small and the Fed is not directly printing money, the signal is significant: Washington appears willing to intervene to prevent long-term rates from rising further. He argues that higher yields increasingly reflect investor concerns about government debt levels, deficits, and the prospect of repayment in depreciated dollars.

Lundin describes the current gold bull market as different from prior cycles. Central banks have been steady buyers for years, elevating gold's role in sovereign reserves. He contends that gold is effectively 'sniffing out' the next phase of the debt crisis and sees a possible long-term reattachment of gold to the monetary system.

Lundin forecasts gold could approach or exceed $5,000 per ounce before the end of 2026. Silver, he suggests, could reach approximately $100 in 2027. He recommends physical gold and silver primarily as wealth insurance, with mining stocks providing additional upside.