Gold Breaks Above Trading Range as US Treasury Yields Plummet

The value of gold has surged more than 3.5% to its highest level since June 4, breaking above its week-old trading range.

This rally is attributed to a softer US Dollar and a sharp pullback in long-term US Treasury yields following the US Treasury's announcement to increase liquidity-support buybacks for longer-dated government securities.

The 10-year yield has dropped by more than 5 basis points, while the 30-year yield has declined nearly 9 basis points.

Antreas Themistokleous from Exness pointed out that recent softer US economic data has lowered the probability of an interest-rate hike at the upcoming meeting, easing a major headwind for gold.