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Gold jumps more than 3% after Treasury liquidity support sinks yields
Spot gold hit $4,487.91 per ounce, while silver rose nearly 4% and the dollar index fell 0.8%.
Gold surged more than 3% to its highest level in over two-and-a-half months on Wednesday, after a surprise U.S. Treasury liquidity support announcement pushed down bond yields and the U.S. dollar ahead of the release of the Federal Reserve's July meeting minutes, according to LiveMint Markets.
Spot gold rose 3.6% to $4,487.91 per ounce by 2:10 p.m. EDT after touching $4,499.20 earlier in the session, while U.S. gold futures settled 2.8% higher at $4,545.30. On the technical front, spot gold broke above its 100-day moving average of about $4,381.
The article said the U.S. dollar index fell 0.8%, reducing the cost of dollar-priced gold for non-U.S. buyers. It also cited a sharp drop in 30-year Treasury yields after the Treasury said it would double the size of liquidity support buyback operations for longer-dated bonds.
Other precious metals also climbed, with spot silver up nearly 4% to $65.8 per ounce, platinum rising 5.1% to $1,800.02, and palladium advancing 2.7% to $1,325.12, with all four on track for their biggest daily rise in two weeks.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|Platinum $1,756.80 ▲1.8%