The US Treasury doubled its bond buyback program to $4 billion, triggering a gold surge of over 7% in five days to reach around $4,700 per ounce. The yellow metal gained more than 60% throughout 2025, its most significant annual increase since 1979, before hitting an all-time high above $5,400 earlier in 2026. Central banks purchased 289 tonnes of gold in the second quarter of 2026 alone, reflecting a structural shift away from dollar exposure. While Goldman Sachs noted rising bullish call option demand, some investors are betting on a plateau, including a GLD September 18 call spread that generated a net credit of $58 million. Stanley Druckenmiller criticized these interventions, arguing they distort bond market signals about fiscal sustainability, while Treasury Secretary Scott Bessent defended the program as responsible portfolio management.
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