The US Treasury announced on August 19 that it would double its buyback operations for longer-dated bonds, raising the maximum per operation from $2 billion to at least $4 billion. In response, gold prices surged more than 3-4% on the day, breaking past $4,500 per ounce and approaching three-month highs near $4,600. This decision comes as the 30-year Treasury yield had just reached approximately 5.34%, its highest level since 2007, amid growing concerns about the sustainability of US federal debt, which has crossed the $40 trillion mark. The new buyback limits will take effect from September 9 through November 4.
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