Gold Tops $4,500 as Treasury Buybacks Ease Yields
Gold's 4.05% jump to $4,508.64 on Wednesday was not a fear trade. It was a bond-market trade that spilled into the metals pit. When the Treasury Department said it would at least double its long-dated bond buybacks, it capped the yield the market has to offer to clear new supply, and that yield is the discount rate every non-yielding asset gets priced against. Drop it 8 basis points on the 30-year and gold's opportunity-cost math improves before the opening bell.
Key Takeaways Spot gold jumped 4.05% to $4,508.64 on Wednesday after Treasury said it would at least double long-bond buybacks, pulling the 30-year yield from 5.26% to 5.18% and the 10-year from 4.68% to 4.63% (Reuters, NBC News, Aug…
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