Home›Forex›Major Pairs›US Treasury bond buyback lifts gold and sends the doll…

US Treasury bond buyback lifts gold and sends the dollar lower

PBOC set the USD/CNY midpoint at 6.7808, above the 6.7196 estimate, as markets digested the dollar setback.

Reported · Written up by our desk · Major Pairs

Asian trading on Thursday, August 20, 2026 saw Asian equities rally and gold surge after a surprise US Treasury bond buyback move pushed yields and the US dollar lower, according to Forexlive.

The same news cycle included heightened Middle East risk, with Trump unveiling sweeping new economic measures against Iran and Axios reporting a covert US-run shipping corridor through Hormuz, where vessel fire near the strait remains unconfirmed.

In China, the PBOC set the USD/CNY midpoint at 6.7808 versus an estimate of 6.7196, while China left its 5 year and 1 year Loan Prime Rates unchanged at 3.5% and 3.0%.

Australia also posted a macro data surprise, with the unemployment rate rising to 4.5% in July versus expectations of 4.4%, adding to a mixed backdrop for regional currency expectations.

Latest closeGold $4,432.00 ▲1.6%

More like this

Sources