Gold prices surged sharply, approaching the $4,500 mark as US Treasury's buyback program led to a decline in US bond yields and a weakening US dollar. According to FX Street, Gold (XAU/USD) traded at $4,495, marking an intraday gain of over 3.70% and reaching its highest level since June 4.
The drop in bond yields reduced the opportunity cost of holding non-yielding assets like gold, while the softer US dollar increased gold's appeal to international buyers. This combination fueled the precious metal's strong upward move on Wednesday.
For Japanese investors, this rally underscores the ongoing impact of US monetary actions on global FX and commodity markets, influencing portfolio strategies in both equities and alternative assets.