Treasury's Surprise Buyback Sends Gold Prices Soaring Past $4,500

The US Treasury Department's surprise announcement to double its buyback program for 10- to 30-year Treasuries has sent shockwaves through financial markets. The move, which will inject substantial dollar liquidity into the market, has led to a sharp drop in the 30-year Treasury yield and a weaker dollar index.

In response to the announcement, international gold prices surged past $4,500 per ounce, reaching the highest level in over two and a half months. The Bank of Taiwan's gold passbook selling price also climbed to NT$4,624 per gram, refreshing a two-month high.

Market analysts believe that the Treasury's liquidity support, combined with the Federal Reserve's potential willingness to overlook energy price shocks and mounting stagflation narratives, will drive real interest rates lower. This favorable environment is expected to benefit non-yielding assets like gold.