Gold Prices Pull Back After Hitting Two-Month High on Treasury Move

Spot gold prices declined by 0.6% to $4,495.69 an ounce on Thursday after reaching a two-month high of $4,525.79 earlier in the day, according to Reuters market data.

The move followed the U.S. Treasury's announcement on August 19 that it would increase the size of selected long-duration Treasury buyback operations from $2 billion to at least $4 billion per operation beginning September 9.

The revised limits will apply through November 4, and are intended to provide additional liquidity support in longer-dated nominal Treasury securities, where the Treasury receives significant volumes of offers from market participants.

Long-duration Treasury yields fell after the announcement, with the 30-year yield declining sharply during Wednesday's session, according to market data cited by Reuters.