U.S. Treasury’s decision to double buybacks of long-dated debt lifts gold futures to highest level since May.
Gold futures climbed to their highest level since May after the U.S. Treasury announced plans to at least double buybacks of longer-dated government bonds. The move aims to inject liquidity into the market, pressuring bond yields and the dollar lower.
The 30-year Treasury yield fell as investors reacted to the surprise announcement, which contrasts with recent market expectations. Gold, often seen as a safe-haven asset, benefited from the shift in sentiment amid declining yields and a weaker dollar.
Markets are now assessing the potential long-term impact of the Treasury’s strategy on inflation and monetary policy.