Gold Holds Steady at Two-and-a-Half Month High Amid Treasury Buybacks
Gold prices held steady on Thursday at their highest levels in over two-and-a-half months, after gaining 4.1% the previous day and reaching above $4,500/oz for the first time since early June.
The rally was capped by a short-lived surge in U.S. Treasury bonds, which saw yields slide due to an announcement from the Department of the Treasury that it would increase repurchases of long-dated government debt to at least $4 billion.
However, traders resumed selling bonds on Thursday, with the 30-year yield last up 3.8 basis points to 5.232% amid concerns over the U.S. national debt surpassing $40 trillion and increasing fiscal worries.
The Federal Reserve's July meeting minutes also weighed on gold prices, as policymakers expressed concerns about inflation risks and the potential for rate hikes if inflation does not decline.