Gold Prices Soar on US Treasury Debt Buybacks
The gold futures market on Bursa Malaysia Derivatives saw an increase in prices following the announcement by the US Treasury Department to expand its debt buybacks. The move is expected to lower long-end US Treasury yields, which in turn has taken some support away from the US dollar and given gold a boost.
According to Stephen Innes, global strategist at Quintex Intel, the expansion of US Treasury buybacks has resulted in a decline in long-end US Treasury yields. This has had an impact on the value of the US dollar, making it less attractive as a safe-haven asset and causing gold prices to rise.
The August 2026 contract saw a gain of $134.50 per troy ounce to reach $4,494.50, while the September 2026 contract rose by $134.40 per troy ounce to $4,511.00. The October and November 2026 contracts also increased in value, reaching $4,527.30 per troy ounce, as did the December 2026 and February 2027 contracts which strengthened to $4,535.10 per troy ounce.
The trading volume rose to 338 lots from 327 lots on Wednesday, while open interest inched up to 415 contracts from 413 contracts previously.