Gold experienced dramatic price action in international financial markets, touching an 11-week high of $4,528 per ounce during early Asian trading hours. The sudden surge in the yellow metal was primarily driven by a liquidity rescue package announced by the US Department of the Treasury, designed to stabilize long-term Treasury yields and ease pressure on global bond markets. Although bullion experienced a minor pullback later in the session due to a recovery in the greenback, prices remained resilient around the $4,500 psychological threshold. Live market data at the close showed Gold futures (GC=F) finishing at $4,551 per ounce, marking a notable 4.23 percent gain from the previous close of $4,366. Over the past 52 weeks, Gold has traded within a broad range of $3,310 to $5,586 per ounce.
US Treasury Expands Liquidity Buybacks
In a strategic effort to support market liquidity and manage volatile yields on long-dated debt securities, the US Treasury Department announced an expansion of its bond repurchase program. According to an official statement, the department will double the size of its liquidity support buyback operations for 10-year to 30-year Treasury debt securities from the previously planned $2 billion to at least $4 billion per operation.
This expanded policy will run from September 9 through November 4 and will specifically target the 10-year to 20-year sector alongside the 20-year to 30-year sector. The announcement immediately calmed turbulent bond markets, driving long-term yields lower and putting heavy downward pressure on the US Dollar (USD). The weaker greenback provided immediate support to non-yielding bullion assets.
Federal Reserve Minutes Highlight Inflation Risks
Despite the initial rally, Gold surrendered part of its gains, falling over 0.50 percent during intraday trading as the US Dollar recouped losses. The greenback found solid support following the release of the Federal Reserve's July policy meeting Minutes, which underscored persistent concerns among central bank officials regarding stubborn inflation pressures.
The published Minutes revealed that several Fed policymakers were open to further interest rate hikes if inflationary pressures failed to move convincingly toward the central bank's 2 percent target. The prospect of sustained or higher interest rates helped stem the decline in the US Dollar, creating temporary resistance for Gold's upward trajectory.
Geopolitical Strains and Statements on Iran
Heightened geopolitical tensions also played a pivotal role in maintaining safe-haven demand for Gold. US President Donald Trump issued a statement on Truth Social outlining plans for severe economic measures against Iran, characterizing the campaign as an economic D-Day intended to achieve unprecedented international isolation.
President Donald Trump called upon international allies to join the initiative. Despite growing uncertainty regarding maritime traffic through the Strait of Hormuz, crude oil prices remained in a consolidated holding pattern while precious metals attracted protective capital flows.
Technical Indicators and Chart Setup
From a technical analysis perspective, Gold maintains a constructive bullish posture on the daily chart. Spot prices at $4,495.76 held firmly above key short-term moving averages, including the 21-day SMA at $4,240.40, the 50-day SMA at $4,164.36, and the 100-day SMA at $4,380.25. On Wednesday, Gold settled above its 200-day SMA for the first time since June 4.
The 200-day SMA at $4,512.34 (with the live SMA200 recorded at $4,493) serves as immediate overhead resistance. A sustained breakthrough above this level could unlock additional upside potential toward higher psychological thresholds. The 14-day Relative Strength Index (RSI) registered near 65 on the daily chart, while live indicators showed an overbought reading of 71 with MACD remaining in positive territory at 87.77. On the downside, the 100-day SMA near $4,380.25 provides initial support, followed by the 21-day and 50-day moving averages.
Foreign Exchange Trends: GBP and EUR Rally
The retreat of the US Dollar sparked notable moves across major currency pairs. GBP/USD surged past the 1.3600 mark, reaching its highest level since mid-May. Sterling was further bolstered by official economic data showing that UK annual Consumer Price Index (CPI) inflation rose to 2.9 percent in July, matching market forecasts, while core CPI increased by 2.6 percent year-over-year compared to expectations of 2.5 percent.
Simultaneously, EUR/USD gathered strong momentum, climbing above 1.1650 to hit its highest point since early June, directly benefiting from the Treasury's market operations and subsequent weakness in the greenback.
Digital Assets: Hyperliquid Gains 20 Percent
The cryptocurrency space also experienced notable movements as Hyperliquid jumped over 20 percent in a single session. The rally occurred after President Donald Trump indicated that the Commodity Futures Trading Commission (CFTC) is actively exploring measures to integrate the decentralized perpetual futures platform into the US regulatory framework.
Institutional Banking Perspective
Institutional analysis from TD Securities highlighted that precious metals are benefiting from renewed investor demand. Analysts at the bank noted that the US Treasury's expanded liquidity support buyback operations have injected fresh energy into the metals complex, reaffirming Gold's traditional role as a resilient store of value during policy shifts.
