Gold surges above $4,500, silver breaks $66 as Treasury buyback sinks yields – Kitco PM Report

(Kitco NewsWire) – Spot gold and silver prices are sharply higher in late-afternoon U.S. trading Wednesday, as a Treasury-led bond-market rally pulled yields lower, weakened the U.S. dollar and helped precious metals cut through key resistance levels even after Fed minutes showed policymakers were more concerned about inflation. At the time of writing, spot gold was trading near $4,521.00 an ounce, up 4.33%, while spot silver was trading at $66.550, up 5.29% on the session.

North American equity markets closed higher, snapping a three-session slide. The Dow Jones Industrial Average rose 86.81 points, or 0.16%, to 53,430.21, the S&P 500 gained 12.56 points, or 0.16%, to 7,704.32, and the Nasdaq Composite added 21.95 points, or 0.08%, to 26,311.66. European markets were mixed to weaker, with the STOXX Europe 600 down 0.11% to 651.16, Germany’s DAX down 0.14% to 26,091.33, France’s CAC 40 down 0.09% to 8,501.91 and Italy’s FTSE MIB down 0.75% to 52,618.20. London’s FTSE 100 rose 0.14% to 10,743.35.

The latest positioning was dominated by the Treasury’s decision to boost long-dated bond buybacks, which hit the part of the curve that had been pressuring metals all week. The 10-year Treasury yield fell toward the 4.6% area and the 30-year yield pulled back toward 5.2%, while the dollar broke lower. The Fed minutes showed several officials supported a 25-basis-point hike at the July meeting, the committee voted 9-3 to hold the federal funds target range at 3.50% to 3.75%, and markets still price September hike odds near 56%, down from 82% immediately after the July decision. For gold, the day’s key message was that lower real-rate pressure overwhelmed the hawkish tone of the minutes. The next data tests are jobless claims and the Philadelphia Fed index Thursday, followed by flash PMI readings Friday.

Precious metals were the standout cross-asset move. Gold cleared the $4,448 resistance area from earlier technical work, pushed through the 4,480-4,500 band and traded at a session high of $4,523.10. Silver ripped through $64, $65 and $66 after holding above its 50-day moving average, touched $66.81 and tested the $66.80 swing-top area. The move was not just defensive buying: the Treasury announcement forced a rates-and-dollar reversal at the same time, turning early-session metals sellers into afternoon buyers.

The Strait of Hormuz remains the main geopolitical channel into oil, inflation expectations and defensive demand, but Wednesday’s metals rally was led by the bond market rather than crude. U.S.-Iran talks remain stalled, Washington says the strait is open and operating, while Tehran says shipping remains restricted, and Oman-Iran talks continue without U.S. participation. Brent crude held near $91 a barrel and WTI traded around $85 as traders monitored whether tanker flows can normalize. For gold, the setup remains supportive but conflicted: lower yields and a weaker dollar are bullish, while elevated oil keeps inflation risk alive and prevents a clean dovish read-through from softer U.S. data.

The key outside markets see Nymex WTI crude oil prices firmer and trading around $85.41 a barrel, while Brent crude was near $91.00. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.6% area. The U.S. dollar index is sharply lower. (Kitco Global Index shows how much of today’s gold move is the dollar versus the gold market itself.)

Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,630.00 to $4,650.00 resistance zone, with a sustained move targeting $4,700.00 and then $4,778.00. Bears’ next near-term downside price objective is a break below $4,450.00, with deeper downside targets at $4,360.00 and then $4,333.00. First resistance is seen at $4,630.00 and then at $4,650.00. First support is seen at $4,500.00 and then at $4,450.00.

Spot silver bulls’ next upside price objective is to drive prices back above $66.80, with a move above that level targeting $71.77 and then $72.00. The next downside price objective for the bears is a break below $66.54, with deeper downside targets at $61.31 and then $60.83. First resistance is seen at $66.80 and then at $71.77. Next support is seen at $66.54 and then at $61.31.

See live precious metals prices for gold, silver, platinum and palladium — in USD, CAD and 12 more currencies.