Gold futures climbed on Thursday and extended gains into Friday after the U.S. Treasury announced it would double the size of its long-term bond buybacks to at least $4 billion per operation, a move aimed at supporting liquidity in government debt markets. December gold futures rose to $4,598 per troy ounce in early Friday trading, up from an opening of $4,580 on Thursday.
Treasury Secretary Scott Bessent indicated the government may expand buybacks further. The announcement helped ease the 30-year yield, which had climbed to its highest level since 2007 before the intervention. Benchmark 10-year and 30-year rates fell 5 and 9 basis points respectively following the news.
The rally comes as U.S. national debt topped $40 trillion for the first time, roughly two years ahead of Congressional Budget Office projections. Gold remains up 14.4% over the past month, though well below its January all-time high of $5,598.