Gold Edges Higher Amid US Treasury's Bond Buyback Plans

The price of Gold edged higher to around $4,530 in Friday's early Asian session. This comes as the US Treasury announced plans to increase buybacks of longer-dated bonds. The decision is seen as a move to support the long end and curb rising borrowing costs.

US Treasury Secretary Scott Bessent stated that interest rates have nothing to do with the bond buyback decision. However, the potential upside for Gold may be limited due to energy-driven inflation pressures, which raises the prospect of Federal Reserve rate hikes in the coming months.

According to TD Securities, recent policy signals from Washington are helping to shore up bullion in the near term. The bank highlights that the current US rates and policy backdrop remains broadly constructive for Gold despite rising yields.