US Treasury Buyback Announcement Sends Gold and Silver Prices Soaring

Gold and silver prices have surged to their highest level in two months, following an announcement by the US Treasury that it will double its long-end liquidity support buyback sizes. The move is effective September 9, with a maximum size of $4 billion per operation.

The decision has halted pressure on bond selling, causing US Treasury bond yields to fall. The yield on the 10-year US Treasury note dropped to 4.65% on Wednesday after testing 20-month highs of 4.75% in the previous session.

Treasury Secretary Scott Bessent called the buyback program a crucial tool for managing market dislocations and supporting liquidity. With bond yields trending lower, it suggests that interest rates will not stay elevated, which supports non-yielding assets like gold.