Gold and Cryptocurrency Prices Soar as US Dollar Retreats and US Treasury Enters to Support Bonds

The price of gold rose 4.3% to $4,520 per ounce in morning trading in New York, reaching its highest level since the end of May. Silver increased 5.4% to $66.78 per ounce.

In the cryptocurrency market, Bitcoin, the largest crypto asset, broke out of a trading range that had persisted for months on Wednesday, posting its biggest jump since March, with a 6.3% rise to $68,614, according to Bloomberg.

The surge came ahead of a meeting scheduled between President Donald Trump and executives from companies including Coinbase Global, Bitwarden, and Blockchain.com Group Holdings at the White House. The appeal of digital assets was also bolstered by a sharp decline in borrowing rates.

The US dollar suffered its largest losses in three weeks, hitting its lowest level since mid-May, as bond prices rose following a surprise announcement by the US Treasury Department to expand its long-term bond buyback program, signaling US efforts to reduce borrowing costs after yields hit multi-decade highs.

The Bloomberg Dollar Spot Index fell 0.8% as the US currency weakened against major peer currencies, with the Swiss franc and Swedish krona among the biggest gainers.

The Treasury’s move reflects concerns over ongoing large-scale selling in the bond market, which pushed 30-year bond yields to their highest levels since 2007, amid growing investor worries about rising federal debt, the war with Iran, a massive wave of corporate borrowing to fund artificial intelligence investments, and inflation that has exceeded the Federal Reserve’s target since 2021, according to Bloomberg.