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Gold holds below $4,500 as hawkish Fed backdrop weighs on bullion
Gold stayed near its early-June peak while the yen-free, non-yielding metal was pressured by stabilizing USD moves and retreating US bond yields after the Treasury expanded long-dated buybacks.
Gold prices remained below $4,500 in early European trading, staying close to the highest level seen since early June after a move earlier on Thursday, according to FXStreet.
The article links the tone in bullion to a hawkish Federal Reserve signal, saying July 28 to 29 FOMC minutes indicated officials would need to raise interest rates soon unless there is more progress in bringing inflation down, even as recent US data showed only modest monthly price increases.
FXStreet also notes that weakening US bond yields have continued to undermine the US dollar, which in turn limited downside pressure on gold, despite safe-haven demand tied to geopolitical uncertainty.
The piece adds that the US Treasury said it would at least double buyback operations for long-dated government debt starting in September, a move that helped push the 30-year yield lower from its highest level since June 2007 and, according to TD Securities, gave metals renewed support as traders watched the day’s US economic calendar.
Latest closeGold $4,432.00 ▲1.6%