Gold prices surged over 4% to a three-month high as US Treasury bond buybacks and a weaker dollar fueled safe-haven demand.
Gold prices climbed more than 4% to surpass USD 4,500 per troy ounce, marking the sharpest daily rally in six and a half months. The surge followed the US Treasury’s announcement to double buybacks of long-term government bonds, easing bond market stress but weakening the dollar.
The move pushed gold to its highest level since early June, with ETF inflows hitting 18 tons, the strongest since September 2025. Bond yields declined after the buyback plan, while investor confidence in the dollar as a safe haven waned amid rising US debt concerns.
Market participants viewed the Treasury’s intervention as a sign of financial strain, boosting demand for gold. However, upside momentum may slow if upcoming US inflation data remains elevated.