Gold Rises to Over 2-Month High

Gold prices rose to $4,480 per ounce on Wednesday, the highest since early June, tracking the rally for long-dated US Treasuries after the Treasury Department doubled the buyback of notes and bonds in the upcoming financial quarter. It marked another effort by Washington to contain soaring yields in the longer portion 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, minutes of the Federal Reserve's rate-setting meeting confirmed that a portion of policymakers argued that raising rates this year could prevent sharper inflationary pressure later on.

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%.