Commodities
Gold Prices Reversal: Metal Drops After Two-Month High
Gold prices slipped on Thursday after hitting a two-month high following a surprise U.S. Treasury liquidity-support announcement for long-duration bonds.
The move weakened the dollar and sent Treasury yields lower, leading to a sharp rally in gold prices.
However, investors booked profits as spot gold fell 0.7% to $4,487.63 per ounce by 0604 GMT, down from its earlier high of $4,525.79 since June 2.
The U.S. Treasury Department announced that it would double the size of liquidity support buyback operations for longer-dated notes and bonds.
This move came after a major bond selloff as investors demanded higher returns on the back of increased inflationary risks stemming from the U.S.-Israeli war on Iran.