Silver Rallies as Treasury Buyback Plan Sinks Dollar

Silver prices surged on Wednesday, reaching levels near $65.80 as the US Treasury's buyback plan weighed heavily on the US dollar.

The Treasury Department announced that it will increase its liquidity support buyback operations for longer-dated coupon securities by at least double, effective September 9. This move aims to rein in recent surges in long-end yields and has achieved its goal so far.

The Federal Open Market Committee (FOMC) released its July minutes, which showed policymakers still view inflation as elevated. However, the Minutes did little to shift market sentiment, with traders treating them as backward-looking given softer July inflation data and a weak jobs report.

The Minutes also confirmed the divergence at the FOMC meeting in July, where three officials voted for a rate hike. Markets now price in only a 34% chance of a September rate hike, down from around 60% three weeks ago.