Gold Climbs to Three-Month Peak on Treasury Buyback Boost

Gold jumped to a nearly three-month high after the U.S. Treasury said it would sharply increase buybacks of longer-dated debt, pushing yields lower and the dollar weaker and reviving bullion demand. Front-month gold rose about 2.8% to roughly $4,489.40 an ounce (its highest settlement since May 29), silver rose about 2% to $65.73, and mining stocks rallied as bullion prices strengthened. The move followed the Treasury doubling liquidity-backstop buybacks to $4 billion, with the 30-year yield falling to 5.19% and the 10-year to 4.65%. Despite inflation concerns still echoed in Fed minutes, a weaker dollar and lower real yields could sustain gold’s rally, though further gains depend on upcoming inflation data and yields.