Gold Holds Steady Above $4,500 Amid Muted Gains
Gold prices held steady above $4,500 per ounce on Thursday, following a strong rally in the previous session. The precious metal had climbed to its highest levels since June, but gains were muted due to a short-lived rally in U.S. Treasury bonds and rising oil prices.
The 30-year yield pulled back from a nearly two-decade high after traders resumed selling bonds on Thursday, with the benchmark declining by 3.8 basis points to 5.232%. The update that total U.S. debt had surpassed $40 trillion exacerbated fiscal worries, according to Dan Coatsworth, head of markets at AJ Bell.
The Federal Reserve's July meeting minutes showed policymakers concerned about inflation, with many participants seeing rate hikes likely if inflation did not decline. Meanwhile, Morgan Stanley stated that gold had hit its Q4 target sooner than expected and could surpass $5,000 per ounce next year.