New York gold futures closed up $124.70, or 2.82%, at $4,545.30 an ounce on Wednesday, supported by falling U.S. Treasury yields and a weaker dollar after the U.S. Treasury announced it would increase the size of its government bond buybacks to at least $4 billion from $2 billion, effective from September 9 through November 4. The 10-year Treasury yield fell to 4.647% and the dollar index weakened 0.8%, while the minutes of the Federal Reserve's July meeting showed policymakers were more concerned about inflation, but the CME Group's FedWatch Tool indicated investors see a 65% chance the Fed will hold rates steady at its September 15-16 meeting.
Treasury buyback increase and Fed rate-hold expectations push yields down.
