Gold Holds Ground as Mining Stocks Soar Amid Treasury Buyback Boost
The price of gold held steady on Thursday after surging by over 4% the previous day, despite some investors taking profits. Spot gold was priced at $4,509.91 per ounce at 12:15 p.m. EDT, marking a 0.3% decline for the session.
Gold-mining stocks, however, continued to outperform bullion, with the VanEck Gold Miners ETF (GDX) gaining 2.14%. Newmont Corporation (NEM) was up 2.18% at 1:13 p.m. EDT, reflecting expectations of sustained margin improvements.
The rally in gold was triggered by the U.S. Treasury's announcement to increase scheduled buybacks of 10-to-30-year bonds to a minimum of $4 billion per transaction. This adjustment lifted support by at least $14 billion during the quarter.
Jim Wyckoff of American Gold Exchange described Thursday's decline as 'routine profit-taking pressure,' highlighting that sellers have yet to undo Wednesday's shift in positioning.