Gold Prices Surge on Weaker Dollar and Lower Yields

The price of gold rose on Thursday due to a weaker US dollar and lower US Treasury yields.

Globally, Comex gold futures for December delivery traded flat at $4,546 per ounce in New York. However, the announcement by the US Treasury that it would double its buyback operations for longer-dated bonds pushed down the 30-year US Treasury yield from near two-decade highs to around 5.19 percent.

This decline in yields weakened the dollar and removed a key headwind for gold, according to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd. The combination of easing long-term yields, a weaker dollar, and fiscal concerns continues to support demand for alternative stores of value, strengthening gold's safe-haven appeal.