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Gold jumps toward $4,500 as Treasury buyback pulls US yields lower

The US 30-year yield fell by more than eight basis points to 5.20%, while the 10-year note was down nearly five basis points to 4.660%.

Reported · Written up by our desk · Precious Metals

Gold surged on Wednesday, with XAU/USD trading around $4,495, up more than 3.7% on the day and at its highest level since June 4, according to FXStreet.

FXStreet attributed the rally to a weaker US yield backdrop, saying the US Treasury buyback of long dated bonds helped push yields lower and weighed on the US dollar, measured by the Dollar Index (DXY), which was down 0.8% to 98.85.

The outlet also noted that the US 30-year yield dropped by over eight basis points to 5.20%, and the US 10-year benchmark note fell by almost five basis points to 4.660%.

Looking ahead, FXStreet said gold is moving toward its 200 day simple moving average near $4,510, with traders watching whether it can hold above $4,500, as a failure could lead to a drop back below $4,400.

Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%

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