Treasury Buyback Sends Gold Near $4,500 as Yields Lower

Gold prices remained near $4,500 an ounce as the US Treasury's surprise move to rein in long-term borrowing costs continued to boost its appeal.

The department announced it would increase buybacks of long-dated government debt by at least double, signaling a desire to lower borrowing costs after yields hit multi-decade highs.

This move has been seen as a positive development for gold, which doesn't pay interest and is often used as a hedge against inflation and market volatility.

However, not everyone is convinced that this trend will continue. Christopher Wong, a strategist at Oversea-Chinese Banking Corp., warned that 'the path is unlikely to be linear after the sharp move higher.'

Gains in gold may also be tempered by energy-led inflation pressure, with oil holding steady due to ongoing tensions in the Middle East.