US Treasury's Buyback Decision Sparks Dollar Decline and Gold-Bitcoin Rally

The US Treasury's decision to double its buybacks of long-dated government bonds has sent shockwaves through financial markets, leading to a decline in the dollar and a surge in gold and bitcoin prices. The move is seen as a sign that the US economy is shifting towards inflationary policies, making the dollar less attractive and driving investors towards safe-haven assets like gold and cryptocurrency.

The dollar index (DXY) fell 0.9 percent to around 98.8, its lowest reading since May 29, while gold climbed 2 percent to $4,480 an ounce, its highest since early June. Bitcoin briefly jumped 8 percent to $69,749 before closing at $68,361.

The Treasury's decision is expected to have a lasting impact on the market, with analysts predicting that the dollar will continue to decline and gold and bitcoin prices will rise further. However, some experts warn that the move may not be enough to stimulate economic growth and could lead to inflationary pressures in the long run.