U.S. Treasury’s increased buyback of long-dated debt spurs gold rally by easing bond yields pressure on the metal.
Gold prices rose on Wednesday after the U.S. Treasury announced a larger buyback program for longer-dated government debt. The move helped reverse a recent increase in bond yields, which had weighed on the non-yielding asset.
The rally followed weeks of downward pressure on gold due to rising yields, which made yield-bearing assets more attractive. Analysts noted the buyback program’s potential to stabilize yields and support gold’s appeal as a hedge.
Spot gold (XAUUSD) gained modestly, reflecting investor reaction to the Treasury’s announcement and its implications for monetary conditions.