Gold Prices Consolidate Above $4,500 as Treasury Buyback Expectations Soar

Gold prices continued to consolidate at elevated levels on Thursday, holding above $4,500 per ounce. Spot gold edged down 0.1% to settle at $4,516.19 per ounce after dipping intraday to $4,450.08.

The price stability was due in part to expectations that the U.S. government may further expand long-dated Treasury buybacks. U.S. Treasury Secretary Scott Bessent signaled that individual bond program repurchases could potentially exceed $4 billion.

Analysts note that a potential decline in long-term real interest rates, brought about by the Treasury's actions, would support gold prices. This is because falling real rates reduce the opportunity cost of holding gold, boosting demand from both safe-haven and investment capital.