Gold Hits 10-week High

Gold prices rose to $4,480 per ounce on Wednesday, the highest since early June, tracking the rally for long-dated Treasuries after the US Treasuries announced it would double the buyback of notes and bonds in the upcoming financial quarter. The Treasury Department stated it would raise its buyback limit to $4 billion on the quarter to November, another effort to contain soaring yields in the long-term of the curve, following Secretary Bessent's call for higher limits on the Federal Reserve's FIMA facility. Lower borrowing costs reduce the opportunity cost for markets to hold precious metals, which carry no coupons. On top of that, the initial increase in dollar liquidity due to the measures also aid gold prices. Meanwhile, the Fed is due to release minutes from the Fed's last meeting. The resulting decision was of a rate hold, although three FOMC members dissented on the hawkish side.

Gold increased to 4451.00 USD/t.oz, the highest since June 2026. Over the past 4 weeks, Gold gained 10.94%, and in the last 12 months, it increased 32.93%.

Gold traded around $4,350 an ounce on Wednesday after dropping nearly 2% in the previous session, pressured by elevated global bond yields amid growing fiscal concerns and persistent inflationary pressures. The 30-year US Treasury yield reached a 19-year high this week, while sovereign yields across other major economies also climbed to their highest levels in decades. The precious metal also faced pressure from rising oil prices as the US and Iran showed little indication of reaching an agreement to end the conflict and reopen the Strait of Hormuz in the near term. President Donald Trump said there were no ongoing talks with Tehran, while Iranian forces have intensified attacks on shipping in the Strait of Hormuz. Investors now await minutes from the Federal Reserve’s July meeting and remarks from Chairman Kevin Warsh at the annual Jackson Hole symposium for fresh clues on the monetary policy outlook.