Gold Breaks Above $4,650 as US Dollar Weakens and Bond Buybacks Soar

Gold prices have surged past $4,650 due to a weakening US Dollar and plans by the US Treasury to buy back bonds.

The move has triggered short-covering, as investors scramble to cover their positions in the face of lower Treasury yields.

A softer Greenback makes USD-denominated gold more attractive to foreign currency holders, while reduced Treasury yields decrease the opportunity cost of buying bullion.