US Treasury's Surprise Buyback Triggers Gold Price Surge

The US Treasury's surprise buyback of long-term government bonds has triggered a 'dual-path engine' driving gold prices up for a third consecutive week. The move has pushed yields and the US dollar lower, while boosting gold prices to around $4,530 per ounce.

The U.S. Treasury Department increased its buybacks of long-term Treasuries with maturities of 10 years or more, highlighting global financial markets' concerns over its debt burden. As a result, gold prices are poised for a third consecutive week of gains, with the price curve benefiting from a 'dual-path' structure triggered by the US government's repurchase.

Investors profit from the opportunity cost of holding assets as risk-free rates decline, and from credit premiums if yields spiral out of control. Spot gold prices have held steadily above the key threshold of $4,500 per ounce following a surge of more than 4% on Wednesday alone.