1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
The U.S. Treasury surprised markets Wednesday by announcing it would at least double the size of its liquidity support buyback operations for securities in the 10- to 30-year sector. Long-end yields fell sharply and the dollar index hit a three-month low, giving precious metals a strong lift. Gold mining stocks rose even more.
Spot gold gained $185.50 to $4,518.90, a rise of 4%, after touching $4,524.50 and clearing a level that had capped prices for weeks. Silver climbed 5.34% to $66.57, palladium added 4.18%, and platinum rose 6.14% to $1,815, with a session high of $1,830. The dollar index fell 0.78% to a three-month low. The 10-year Treasury yield dropped 6 basis points to 4.65%, while the 30-year yield fell as much as 10 basis points to 5.18%.
Gold miners outpaced the metals themselves. The VanEck Gold Miners ETF (GDX) jumped 8.8% to about $96.88. Agnico Eagle Mines (TSX: AEM; NYSE: AEM) rose 8.85% to roughly $282.44, and Barrick Mining (NYSE: B; TSX: ABX) advanced 7.66% to $45.33.
The Treasury said it would at least double liquidity support buyback operations for securities in the 10- to 30-year sector. The previous schedule running from Sept. 9 through Nov. 4 had indicated up to $14 billion in purchases; doubling that implies at least another $14 billion. The long end had already been under pressure: a 10-year auction last week drew the highest financing cost since 2007, a 30-year sale cleared at the steepest yield since 2001, and a $16 billion 20-year bond auction was looming. Days earlier, the Treasury made an interest payment of about $85 billion, a record.
Treasury Secretary Scott Bessent has said he wants the 10-year yield below 4%. Whether larger buybacks can keep long-term yields lower remains uncertain. A Bloomberg strategist said additional buying alone is unlikely to reverse long-end selling, though the signal could trigger more short-covering. A portfolio manager at Brandywine Global Investment Management likened the move to Operation Twist and said a slowing economy or a resolution of the Iran conflict would be stronger forces pulling long-term rates lower.
The Federal Reserve released minutes from its July meeting Wednesday afternoon. Several officials had argued for a rate increase, and many said tightening would likely be necessary if inflation did not fall. One arm of government was pressing for higher rates while the Treasury was trying to pull long-term rates lower. Traders sided with the Treasury. According to CME FedWatch, futures pricing implied roughly a 36% chance of a September rate increase Wednesday morning, down from more than 70% at the end of July.
Industrial metals moved in the opposite direction. Copper fell 0.85%, nickel 1.62%, zinc 0.80%, and aluminum 0.66%. Wednesday’s bid was for metals people store, not the ones they use.
Aluminum’s decline came with news. President Trump said he was considering lowering tariffs on Canadian metals, currently at 50%. Bloomberg reported that a tentative deal would reduce the rate on certain Canadian steel and aluminum exports to 25%, though terms are not final and would not apply across the board. Friday is the deadline. Canada is the largest single source of U.S. aluminum imports and supplies roughly half of U.S. consumption. Lower tariffs would mean cheaper metal entering a market that cannot supply itself.
