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Gold jumps as Treasury buybacks pull yields lower after Fed minutes

XAU/USD was up more than 3.5% with the 30-year Treasury yield falling to 5.20% and the dollar index down 0.80% to 98.85.

Reported · Written up by our desk · Precious Metals

Gold rose during Wednesday’s session after the US Federal Reserve released the minutes of its July meeting, which showed the policy rate held unchanged but not unanimously, with three members dissenting and calling for a rate hike, FXStreet reported.

At the time of writing, XAU/USD traded around $4,482, up more than 3.5%. The move was attributed in part to Treasury buybacks that coincided with lower Treasury yields, including the US 30-year yield dropping by over eight basis points to 5.20% and the 10-year benchmark falling almost five basis points to 4.660%.

FXStreet also pointed to the broader backdrop of higher yields since July, which it linked to rising energy prices related to the Middle East conflict and resulting inflation expectations. The non-yielding metal received additional support as the US Dollar Index fell 0.80% to 98.85.

Looking ahead, the session’s US data calendar includes Initial Jobless Claims, a speech by St. Louis Fed President Alberto Musalem, and S&P Global Flash PMIs. Technical levels highlighted by FXStreet include the 200-day simple moving average near $4,510 and a need to stay above $4,500 to sustain momentum, with downside risk if a move above $4,500 proves false.

Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%

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