Spot gold rose 1% to $4,399.14 an ounce by 15:58 ET on Wednesday, extending a rebound that pushed bullion back above the $4,400 mark. Gold futures also climbed 0.1% to $4,444.20. The move was driven by a softening U.S. dollar and waning expectations that the Federal Reserve would raise interest rates at its upcoming meeting.
Brent crude futures surged 3.7% to $101.57 a barrel, topping the $100 threshold for the first time since May 26, adding to inflationary pressure that weighed on Treasury markets. The U.S. 10-year yield rose 3.8 basis points to 4.842%, while the 2-year gained 2.7 basis points to 4.425%. Yields had already ticked up modestly before the Treasury announced its latest buyback plans.
The Treasury Department said Wednesday it would purchase up to $6 billion in 10- to 20-year maturities, an increase from the $2 billion plan initially reported. Last month's program called for at least $4 billion, and media reports had anticipated a figure closer to $10 billion. The buyback aims to manage debt rollover risks even as investor concerns mount over inflation from soaring energy costs, corporate borrowing to fund artificial-intelligence infrastructure, and the pace of U.S. fiscal expansion.
Gold and silver have tracked a strong inverse correlation against the dollar for more than seven months, since both metals sold off sharply in early February after hitting all-time highs at the end of January. David Morrison, senior market analyst at Trade Nation, noted that while such correlations typically break down eventually, the current relationship has held firm — with a key test likely ahead. U.S. wholesale inflation data, the producer price index, is due Thursday, followed by the consumer price index on Friday. Both readings will shape expectations for the Fed's next policy move.
Geopolitical tensions compounded market volatility. U.S. Central Command said it destroyed five Iranian crude oil carriers after an attack by the Islamic Revolutionary Guard Corps targeting a U.S. Navy warship. Iran's state media reported strikes on two American vessels, eight oil tankers, 10 ships backing the United States, and a military base in Jordan. Jordanian officials said 18 of 20 incoming missiles were intercepted, with the remainder landing in unpopulated areas. U.S. Secretary of State Marco Rubio, speaking during a visit to Colombia, warned Iran it would "lose tankers" if it continued targeting U.S. naval vessels.
