Gold surged above $4,500 an ounce on Wednesday, extending a powerful rally as falling long-term Treasury yields and a weaker U.S. dollar outweighed a hawkish message from the Federal Reserve’s latest meeting minutes.
Gold briefly reclaimed $4,500 during the session, its highest level in roughly two months. Spot bullion was later around $4,488, up 3.6%, while U.S. gold futures settled 2.8% higher at $4,545.30. The move also carried gold above its closely watched 100-day moving average near $4,381.
The breakout follows several weeks of improving momentum. Coinpaper’s latest gold price forecast had highlighted the $4,440–$4,450 area as an important resistance zone, with UBS maintaining a longer-term target of $5,000.
Treasury Buybacks Send Bond Yields Lower
The biggest catalyst came from the U.S. Treasury rather than the Fed.
The Treasury announced plans to double the size of buybacks for longer-dated government bonds, providing relief to a market that had pushed 30-year yields to their highest level since 2007.
The 30-year Treasury yield fell nearly 10 basis points to around 5.19%, after reaching 5.337% a day earlier.
Lower bond yields tend to support gold because the metal does not pay interest, reducing the opportunity cost of holding bullion. The dollar index also fell about 0.8%, making dollar-denominated gold cheaper for overseas buyers.
The relationship between gold, yields and the dollar has already been a major driver this month. Coinpaper recently examined how gold has been outperforming Bitcoin as Treasury yields and the dollar weaken.
Fed Minutes Keep Rate Hike Risk Alive
The rally held even after the Federal Reserve released minutes from its July 28–29 meeting, which showed growing concern about persistent inflation.
Several policymakers were prepared to raise rates at the July meeting, while many said further tightening could be required if inflation does not return toward the Fed’s 2% target. The central bank ultimately kept rates at 3.50%–3.75%, with three officials voting for a quarter-point increase.
Short-term yields reacted more directly to the hawkish tone, with the two-year Treasury yield edging higher after the minutes. Longer maturities remained lower because of the Treasury buyback announcement.
Gold’s rally also spread across precious metals. Silver gained nearly 4%, platinum rose about 5.1% and palladium advanced 2.7%, pointing to broader demand across the sector.
For gold, the next technical test is whether prices can hold above the $4,500 area. A sustained breakout would strengthen the bullish structure, while a move back below the level could turn $4,500 into resistance again.
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