Gold and Silver Surge to Three‑Month Highs as Dollar Weakens

Gold hit a three‑month high at $4 661.70, while silver crossed the $70 mark at $70.08.

Dollar Weakness Fuels Metal Rally

A modest dip in the dollar index lifted gold and silver about 5 %, marking the first significant uptick after a stagnant summer.

Investor Confidence Boost: Treasury Buyback Announcement

UBS Group AG strategist Bhanu Baweja highlighted the Treasury’s plan to double buybacks of 10‑30 year securities as a “very important signal” for gold.

Year‑to‑Date Price Trajectory

■Gold ranged between $4 000–$4 200, peaking near $5 600.

■Silver hovered $50–$60, reaching $121 at its apex.

■Quarterly decline: Gold lost 16 %, its worst in over a decade.

■Summer lows: Both metals fell to seven‑month lows.

Fed Outlook and Future Dynamics

CME Group’s FedWatch tool projects a 70.9 % probability of a rate hike at the December meeting, higher than the odds for September or October.

Historical Context: Geopolitics and Policy Drivers

■Trump tariffs and the Iran war saw metals move inversely to oil.

■Technological demand and rate cuts propelled prices to highs.

■The Kevin Warsh appointment triggered a downturn.

Markets view this period as a safe‑haven rally, amplified by a weaker dollar and the Treasury’s increased bond‑buying plans, especially amid uncertain interest‑rate expectations.