Gold Prices Retreat After Sharp Gains Amid Inflation Concerns
Gold prices have retreated from their highest level since June 2 as traders took profits after sharp gains in the previous session. Spot gold was down 0.3% at $4,509.91 per ounce by 12:15 p.m. EDT (1615 GMT). The metal had leapt over 4% on Wednesday following the Treasury's announcement to increase buybacks of longer-dated bonds.
The US dollar and bond yields dropped sharply after the announcement, which may have contributed to gold's decline. Market analyst Jim Wyckoff attributed gold's drop to 'routine profit-taking pressure' following strong gains in the previous session.
Higher oil prices and inflation concerns also undermined the metal, with oil reaching a three-week high due to stalled talks over the Iran conflict. The US Federal Reserve minutes highlighted policymakers' concerns about inflation, which may lead to further rate hikes.