The sudden shift in momentum followed the Treasury’s decision to increase long-dated bond buybacks, a move that targeted the very section of the yield curve that had pressured metals throughout the week. As the 10-year Treasury yield drifted toward 4.6% and the 30-year yield pulled back toward 5.2%, the dollar weakened, forcing early-session sellers to flip their positions. This reversal occurred despite the release of Fed minutes, which revealed that several officials had advocated for a 25-basis-point hike during the July meeting. While markets still price in a 56% probability of a September rate increase, the immediate market reaction focused on lower real-rate pressure rather than the committee's inflation concerns.

Technically, gold cleared the $4,448 resistance level, pushing through the $4,500 band to hit a session high of $4,523.10. Silver showed similar strength, piercing the $66 threshold after holding above its 50-day moving average. While geopolitical tensions in the Strait of Hormuz continue to underpin oil prices, the metals rally remained driven primarily by bond market dynamics. Moving forward, investors are bracing for further volatility as they await Thursday’s jobless claims and the Philadelphia Fed index, followed by flash PMI readings on Friday.