YLG recommends opening a long position in gold if the price pulls back to the 4,450 to 4,400 dollar per ounce area, with a stop loss if the price breaks below 4,285 dollars. Gold closed on Wednesday night, 19 August 2026, at 4,545.30 dollars per ounce, up 124.70 dollars, or 2.82 percent, from the previous day, marking one of the strongest gains this year. The main support came from the US Treasury announcing it would buy back bonds with maturities of 10 to 20 years and 20 to 30 years, expanding the maximum size to at least double, from 2 billion dollars to at least 4 billion dollars, effective from 9 September to 4 November 2026. As a result, the yield on the 10-year US government bond fell to 4.647 percent and the 30-year yield fell to 5.196 percent, while the dollar index dropped 0.83 percent to 98.833. The yen strengthened from 159.6 yen per dollar to 158.32 yen, and the euro strengthened from 1.1576 dollars to 1.1674 dollars. Total US public debt outstanding surpassed 40 trillion dollars for the first time in history, standing at 40.047 trillion dollars as of 18 August 2026, split between debt held by the public of 32.266 trillion dollars and intragovernmental debt of 7.782 trillion dollars. On monetary policy, the minutes of the Fed's July meeting showed that policymakers were more concerned about inflation, and several saw that the Fed may need to raise interest rates if inflation does not fall toward the 2 percent target. However, CME Group's FedWatch tool indicated that investors assigned a 65 percent probability that the Fed will hold rates at its meeting on 15 to 16 September 2026, after US economic data came in weak. The market therefore chose to place more weight on economic data than on Fed officials' remarks. For investment strategy, YLG recommends taking profit if the price fails to break above 4,527 dollars, but if it breaks above 4,527 dollars, delay profit-taking to the 4,575 to 4,596 dollar area.
US Treasury bond buyback program lowers yields, so 10Y yield falls.
US Treasury bond buyback program lowers yields, so 30Y yield falls.
