Commodities
$40 Trillion US Debt Keeps Gold Bull Case Alive Amid Market Volatility
Spot gold prices dipped by 0.7% to $4,488.19/oz on August 20 after reaching a two-month high of $4,525.79 due to a 4%+ rally.
The US Treasury's decision to double buybacks of 10- to 30-year debt on August 19 helped cut the 30-year yield by 14 basis points from its 19-year high of 5.337% to 5.198%, reducing the opportunity cost of holding gold.
Ilya Spivak, head of global macro at Tastylive, noted that holding above $4,400-$4,500 supports further gold gains, while a September Fed hike remains the key downside risk with a 31% probability.