Treasury Buyback Boosts Gold and Silver as Bond Yields Fall

Gold and silver became more expensive after the U.S. Treasury announced a larger program to buy certain long-term bonds.

This announcement helped calm the bond market.

As a result, government bond yields fell.

When yields fall, investors may be less interested in assets that pay interest.

That can make gold, which does not pay interest, more attractive.

Silver also rose sharply alongside gold.

The Treasury says the buybacks are meant to support market liquidity and manage disruptions.

Investors are still waiting for more information from the Federal Reserve before deciding whether the rally will continue.