XAU/USD jumps over 3.7% to a June high as Treasury buybacks weigh on US yields and weaken the dollar.
Gold prices climbed sharply on Wednesday, with XAU/USD reaching $4,495, a gain of more than 3.7% for the day. The rally was driven by a decline in US bond yields following the Treasury’s buyback of long-dated bonds, which pressured the dollar lower.
The move marks the highest level for gold since June, reflecting investor demand amid shifting monetary expectations. Prior sessions had seen muted activity, with yields stabilizing before the buyback announcement.
Markets reacted swiftly, with gold futures and spot prices extending gains as yields continued to retreat.