- BIST10011,633-1.39%
- USD49.58+0.05%
- EUR55.62+0.09%
- GOLD4,147.60+0.12%
- INTEREST37.00%-1.00
- BITCOIN83,761+0.99%
- October 21, 202612°
- BIST10011,633-1.39%
- USD49.58+0.05%
- EUR55.62+0.09%
- GOLD4,147.60+0.12%
- INTEREST37.00%-1.00
- BITCOIN83,761+0.99%
- October 21, 202612°
US Treasury buyback plan lifts gold prices by 3%
Gold prices rose 3% on Wednesday to approximately $4,460 per ounce as of 13:30 GMT after the US Treasury Department announced plans to increase buybacks of longer-term bonds. Falling bond yields and a weaker dollar index supported precious metals.
The US Treasury Department's announcement that it would increase buybacks of longer-term government bonds led to lower bond yields and higher precious-metal prices. Gold rose 3% on Wednesday to approximately $4,460 per ounce as of 13:30 GMT.
Silver also rose 3.3% to $65.40 per ounce. The department announced plans to at least double the size of buyback operations for longer-term bonds and notes.
US Treasury yields fell
Following the announcement of the buyback plan, prices rose and yields fell in the US government bond market. The yield on the 30-year Treasury bond declined to around 5.2% after approaching 5.34% on Tuesday, its highest level since 2007.
The 10-year Treasury yield also fell after approaching its highest level since early 2025. The US Treasury Department said the expanded buybacks were intended to support market liquidity and were not designed to ease periods of severe market stress.
Buyback limit per transaction to rise to $4 billion
Under the plan, the maximum amount for a single buyback operation involving securities with maturities of 10 to 30 years is expected to increase from $2 billion to at least $4 billion.
Falling bond yields generally reduce the opportunity cost of holding gold, which does not provide interest income, supporting the precious metal. A weaker US dollar also contributed to gains in gold and silver prices.
The dollar index, which tracks the value of the dollar against major currencies, fell approximately 0.7% to 98.86. Investors are now awaiting the minutes of the US Federal Reserve's July meeting.
The minutes are expected to provide indications of policymakers' assessments of inflation and the future path of interest rates.
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