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Gold rises while silver dips after Treasury cash-pile buyback signal

Treasury General Account stood at $935 billion as of Aug. 20, and gold was up about 1.2% in New York as long-term yields eased on expectations of buybacks.

Reported · Written up by our desk · Precious Metals

Gold rose while silver fell on Monday after CNBC reported that Treasury Secretary Scott Bessent could tap the government’s $935 billion Treasury General Account to fund bond buybacks, a move that would push long-term yields lower.

According to the report, the Treasury could draw on the Treasury General Account at the Federal Reserve to buy back higher-yielding older securities, using a “Treasury Twist” approach described by Bessent as buying long-term bonds funded by short-term issuance. The two senior Treasury officials cited by CNBC did not say how much, if any, would be used.

The story comes after Bessent doubled long-end buybacks to at least $4 billion from $2 billion last week. As of 12.30pm New York time, gold was up 1.2% near a four-month high around $4,719 per ounce, while the 10-year Treasury yield fell as much as four basis points to 4.69% and the 30-year dropped to around 5.215%.

Silver was down about 1% as it consolidated below $70, after gaining nearly 20% in August versus gold’s 15% through the month. Bloomberg also cited skepticism from RBC Capital Markets’ Blake Gwinn, who questioned the likelihood of the Treasury using the cashpile, and noted the week ahead includes a Jackson Hole speech by Fed Chair Kevin Warsh and a new read on July PCE data.

Latest closeGold $4,323.20 ▼1.2%|Silver $64.58 ▼2.0%

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