{"id":66769,"date":"2026-08-19T16:08:15","date_gmt":"2026-08-19T20:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-surges-as-us-treasury-doubles-bond-buybacks-trump-signals-trade-breakthrough-with-canada\/66769\/"},"modified":"2026-08-19T16:08:15","modified_gmt":"2026-08-19T20:08:15","slug":"gold-surges-as-us-treasury-doubles-bond-buybacks-trump-signals-trade-breakthrough-with-canada","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-surges-as-us-treasury-doubles-bond-buybacks-trump-signals-trade-breakthrough-with-canada\/66769\/","title":{"rendered":"Gold Surges as US Treasury Doubles Bond Buybacks; Trump Signals Trade Breakthrough with Canada"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> skyrocketed 3.6% toward $4,500\/oz<\/strong> after the <strong>US Treasury<\/strong> announced it would double its long-dated bond buybacks to at least <strong>$4 billion per operation<\/strong>, triggering a sharp decline in yields.<\/li>\n<li><strong>President Donald Trump<\/strong> announced a tentative trade agreement with <strong>Canada<\/strong>, pausing planned <strong>50% tariffs<\/strong> and signaling a breakthrough in negotiations over steel, aluminum, and auto duties.<\/li>\n<li>The <strong>US military<\/strong> is conducting a &quot;stealth operation&quot; in the <strong>Strait of Hormuz<\/strong>, successfully escorting nearly <strong>10 million barrels of oil per day<\/strong> through a protected corridor to ease global supply disruptions.<\/li>\n<li><strong>President Trump<\/strong> revealed plans for the US to accumulate <strong>&quot;sizable&quot; amounts of Bitcoin (<a href=\"\/stock\/BTC\">BTC<\/a>)<\/strong> and other cryptocurrencies as a strategic national reserve.<\/li>\n<li><strong>OpenAI<\/strong> is reportedly preparing for an <strong>initial public offering (IPO)<\/strong> as early as <strong>2027<\/strong>, with recent internal valuations reaching approximately <strong>$852 billion<\/strong>.<\/li>\n<\/ul>\n<h2>Treasury Intervention Sparks Precious Metals Rally<\/h2>\n<p>The <strong>US Treasury Department<\/strong> sent shockwaves through financial markets Wednesday by doubling the size of its liquidity-support buyback operations for longer-dated nominal coupon securities. Effective September 9, the maximum size of these operations will increase from <strong>$2 billion to at least $4 billion<\/strong>, targeting the 10-year to 30-year sectors. This move, intended to provide stability to a stressed bond market, sent <strong>30-year Treasury yields<\/strong> down nearly <strong>9 basis points<\/strong> and significantly weakened the <strong>US Dollar Index (DXY)<\/strong>.<\/p>\n<p>The resulting &quot;jolt of life&quot; propelled <strong>Spot Gold (<a href=\"\/stock\/XAU\/USD\">XAU\/USD<\/a>)<\/strong> up nearly <strong>4% to $4,504.59\/oz<\/strong>, its highest level in over two months. Analysts noted that the intervention provides a major boost for non-yielding assets like gold and <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">silver<\/a>, as falling real rates and a weaker dollar lower the opportunity cost for investors. Precious metal miners also saw substantial gains, with some leading stocks rising nearly <strong>9%<\/strong> in intraday trading.<\/p>\n<h2>Trump Brokers Trade Breakthrough with Canada<\/h2>\n<p>In a major shift in trade policy, <strong>President Donald Trump<\/strong> announced that the US and <strong>Canada<\/strong> have reached a tentative agreement that is &quot;good for everyone.&quot; The President paused the implementation of <strong>50% tariffs<\/strong> on Canadian goods\u2014which were scheduled to take effect Wednesday\u2014for a three-day period to allow for the finalization of documents. The deal is expected to lower U.S. tariff rates on <strong>Canadian steel and aluminum to 25%<\/strong> and reduce auto tariffs to <strong>15%<\/strong>, while including new quota arrangements.<\/p>\n<p>Canadian Prime Minister <strong>Mark Carney<\/strong> confirmed that &quot;substantial progress&quot; has been made, though some technical details remain. The agreement aims to resolve long-standing disputes over dairy market access and liquor sales, providing much-needed stability for North American supply chains. The news provided immediate relief to the industrial heartlands of both nations, which had been bracing for significant economic dislocation.<\/p>\n<h2>Stealth Oil Operations and Middle East Tensions<\/h2>\n<p>Amid escalating tensions with <strong>Iran<\/strong>, <strong>Axios<\/strong> reported that <strong>U.S. forces<\/strong> have quietly established a protected shipping corridor through the southern <strong>Strait of Hormuz<\/strong>. The operation allows <strong>15-20 tankers<\/strong> to transit nightly under the protection of U.S. fighter jets, moving approximately <strong>half of pre-war oil levels<\/strong>. Recent U.S. strikes have reportedly degraded Iranian surveillance capabilities, allowing these movements to proceed with limited visibility from Tehran.<\/p>\n<p>Despite these efforts, <strong>Brent Crude<\/strong> rose <strong>1% to $92.37<\/strong> as risks to global oil flows remain elevated. In a related development, <strong>Israel<\/strong> announced it will begin domestic production of <strong>&quot;smart bombs&quot;<\/strong> for its fighter jets to ensure weapons independence. Meanwhile, <strong>Iran&#39;s Central Bank<\/strong> governor stated that no blocked assets have been released under recent agreements, prompting Tehran to propose a new financial corridor within the <strong>BRICS<\/strong> framework.<\/p>\n<h2>Crypto Reserves and AI Infrastructure Debt<\/h2>\n<p><strong>President Trump<\/strong> also made waves in the digital asset space, stating the US has discussed plans to accumulate <strong>&quot;sizable&quot; amounts of Bitcoin (<a href=\"\/stock\/BTC\">BTC<\/a>)<\/strong> and other cryptocurrencies. This announcement coincided with <strong>SEC Chair Paul Atkins<\/strong> proposing &quot;Regulation Crypto Assets,&quot; a new framework designed to provide a regulatory path for digital asset fundraising. The move is seen as a strategic effort to &quot;onshore innovation&quot; and establish the US as a leader in the digital economy.<\/p>\n<p>In the private sector, <strong>Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>)<\/strong> is gauging demand for a <strong>$1.15 billion junk bond<\/strong> to fund a Virginia data center leased to <strong>CoreWeave<\/strong>. The deal highlights the massive capital requirements of the AI revolution, even as borrowing costs for speculative-grade AI infrastructure remain high. Separately, <strong>CNBC<\/strong> reported that <strong>OpenAI<\/strong> is eyeing a public debut by <strong>2027<\/strong>, following a recent <strong>$7 billion<\/strong> tender offer that valued the company at <strong>$852 billion<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Gold prices skyrocketed 3.6% toward $4,500\/oz after the US Treasury announced it would double its long-dated bond buybacks 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