MCX Gold Prices Soar on US Bond Yield Shift

Gold prices surged on the Multi Commodity Exchange (MCX) to ₹1,58,260 per 10 grams on August 20, 2026, as a decline in US Treasury yields supported the metal's rise. The 30-year US Treasury yield fell to approximately 5.19% after the US government expanded its bond buyback operations.

The decision by the US Treasury Department to increase its bond buyback operations for long-term bonds to $4 billion effectively lowered borrowing costs for the economy, leading to a decrease in yields. Lower bond yields typically support gold prices as investors shift capital toward precious metals when government bonds offer less attractive returns.

However, investors should be cautious as the Federal Reserve's July meeting minutes indicated that central bank officials are still concerned about high inflation and may raise interest rates again if price levels do not cool down. Gold often struggles when interest rates are high because it does not earn interest for its holders.