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Gold and silver jump as Treasury plans to double long-dated buybacks
Spot gold was up 3.5% and silver rose 3.3% as the dollar index fell and both the 10-year and 30-year Treasury yields dropped sharply.
Gold, silver and gold miners surged Wednesday after the US Treasury said it would at least double purchases of long dated government debt, a move that pushed down long term yields and weakened the dollar, lifting precious metals broadly, Mining.com reports.
Spot gold traded around $4,484 an ounce as of 10:25 a.m. ET, up 3.46% from Tuesday’s close, while silver rose 3.33% to about $65.44 an ounce. The dollar index fell 0.78%, the 10 year Treasury yield declined 1.27%, and the 30 year yield dropped 1.84%.
Gold miners extended the outperformance, with the VanEck Gold Miners ETF (GDX) up 8.8% to about $96.88. Agnico Eagle Mines rose 8.85% to roughly $282.44, and Barrick Mining gained 7.66% to $45.33.
The catalyst was described as coming from the Treasury rather than the Federal Reserve, after the department said it was increasing, by at least double, the size of liquidity support buyback operations for the 10 to 30 year sector. A tentative buyback calendar covering Sept. 9 through Nov. 4 had indicated purchases up to $14 billion, with the doubled size implying at least another $14 billion starting Sept. 9, according to the report.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|Dollar index 99.64 ▼0.3%