Gold futures held near a two-month high on Wednesday, with spot prices just above $4,523 per ounce, after the U.S. Treasury increased long-dated debt buybacks to at least $4 billion, easing pressure on Treasury yields. The move came as the benchmark 30-year yield fell 9.1 basis points before paring losses to 5.232%, while the 10-year yield declined 5.3 basis points.
Spot gold rose 4.1% in the prior session, breaching $4,500 per ounce for the first time since early June, and futures added 0.8% to $4,580.05 per ounce. The Treasury’s decision to expand buybacks from $2 billion followed a surge in the national debt past $40 trillion—a figure that has doubled in a decade—with annual interest costs approaching $1 trillion. Analysts noted the intervention may have temporarily stabilized long-term yields, though concerns over deficit risks persist.
Brent crude futures advanced 2.1% to $93.54 per barrel, extending weekly gains to more than 7%. The increase coincided with heightened Middle East tensions, which the Federal Reserve’s July meeting minutes described as a key risk to inflation, potentially prolonging supply chain disruptions. Exchange-traded funds recorded net inflows of 70 metric tons in July and August, reversing 93 tons of outflows in May and June.
U.S. Treasury Secretary Scott Bessent said the buyback expansion aimed to address thin trading in long-dated bonds, particularly amid August corporate issuance. Meanwhile, President Donald Trump warned of economic penalties for entities facilitating oil trade with Iran, signaling further geopolitical risks to energy markets.
