Spot gold and silver rallied sharply during Wednesday afternoon US trading hours. A bond market rebound led by the US Treasury pushed down US Treasury yields and weakened the dollar, fueling a strong breakout in precious metals above key resistance levels. Even though the Federal Reserve meeting minutes showed policymakers had more notable concerns over inflation, gold and silver extended gains amid falling yields and a weaker dollar. At the close, spot gold settled at $4,522.68 per ounce, rising $188.78 on the day, or 4.36%. #GoldMarketClose#

(Source: FX168)

Spot silver closed at $66.996 per ounce, up 5.82%.

(Source: FX168)

Treasury Bond Buybacks Trigger Reversal in Rates and the Dollar

The core driver of this rally came from the US Treasury’s decision to ramp up buybacks of long-dated Treasury bonds, a move that directly pressured the long end of the yield curve which had weighed on precious metals all week. The 10-year US Treasury yield retreated to around 4.6%, the 30-year yield fell near 5.2%, and the US Dollar Index declined markedly. Market participants argued that eASIng real-rate pressure overshadowed hawkish signals from the meeting minutes, forming the most important support for gold on the day.

The minutes from the Fed’s July meeting showed several officials supported a 25-bASIs-point rate hike at the July session; the federal funds target range was ultimately kept at 3.50% to 3.75% by a 9-to-3 vote. Interest-rate futures are still pricing roughly a 56% chance of a September hike, down sharply from 82% immediately after the July policy decision. Ahead, markets will watch Thursday’s initial jobless claims and Philadelphia Fed index, plus Friday’s preliminary PMI data.

Gold and Silver Break Key Technical Levels

Precious metals stood out among cross-asset markets on the day. Spot gold broke above the previously highlighted $4,448 resistance zone and moved through the $4,480–$4,500 band, touching an intraday peak of $4,523.10. Silver, after holding its 50-day moving average, sequentially cleared $64, $65 and $66, peaking at $66.81 and testing the near-term high zone around $66.80.

Analysts noted this rally was driven by more than safe-haven buying. The Treasury buyback program triggered an inverse adjustment in rates and the dollar, turning morning selling pressure into buying interest in the afternoon and enabling gold and silver to break rapidly above key resistance.

Geopolitical Risk and Oil Prices Remain Wildcards

The Strait of Hormuz remains a key geopolitical channel affecting crude oil, inflation expectations and defensive demand, yet the dominant force behind Wednesday’s precious metals rally came from the bond market rather than crude. Negotiations between the US and Iran remain stalled; Washington states the strait is open and operating normally, while Tehran says shipping is still restricted. Talks between Oman and Iran continue without US participation.

In crude markets, Brent crude held near $91 per barrel and WTI crude traded around $85 per barrel, with traders monitoring whether tanker traffic can return to normal. For gold, the current environment remains supportive yet contradictory: falling yields and a weaker dollar benefit bullion, while elevated oil prices keep inflation risks alive, preventing markets from interpreting soft US data purely as a dovish signal.

Technical Focus: Upside Target at $4,630

Technically, the next target for spot gold bulls is reclaiming the $4,630–$4,650 resistance zone; a sustained breakout would open $4,700 and then $4,778. On the bearish side, a drop below $4,450 would target $4,360 and $4,333. The primary resistance lies at $4,630, followed by $4,650; primary support sits at $4,500, then $4,450.

For spot silver, bulls aim to push prices back above $66.80; a valid breakout would target $71.77 and $72.00. A break below $66.54 would expose downside toward $61.31 and $60.83. Immediate resistance is $66.80, then $71.77; immediate support is $66.54, followed by $61.31.

Across external markets, Nymex WTI crude trades around $85.41 per barrel and Brent crude near $91.00 per barrel; the benchmark 10-year US Treasury yield hovers around 4.6%, while the US Dollar Index fell sharply. Market participants say the synchronized drop in the dollar and yields formed a key backdrop for this breakout in gold and silver.