Dollar and Yields Weigh on Gold as US Treasury Buyback Looms

The US Dollar and Treasury yields have pushed gold prices lower after the Treasury announced it could buy back up to $6 billion of longer-dated debt on September 10.

Gold (XAU/USD) has struggled to hold onto its Wednesday gains, trading around $4,385 at the time of writing. This is down from a high near $4,434 reached earlier in the day.

The US Dollar Index (DXY), which tracks the value of the Greenback against six major currencies, has recovered from 98.60 to trade around 98.86, its highest level since August 21.

Rising Treasury yields have also weighed on gold, with the benchmark 10-year yield climbing to around 4.85%, its highest level since November 2023.