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Gold miners extend August rally as long-term yields rebound
The VanEck Gold Miners ETF rose 2.3% by 12:40 p.m. ET, while the 30-year Treasury yield briefly hit 5.27% before easing to around 5.25%.
Gold miners extended their August rally even as long-term US Treasury yields rebounded and spot gold dipped slightly, underscoring investor demand for precious-metals equities amid ongoing fiscal worries. Mining.com said the VanEck Gold Miners ETF (GDX) gained 2.3% by 12:40 p.m. ET, with Agnico Eagle Mines up 2%, Newmont ahead 2.2%, and Barrick Mining adding 2.1%.
Spot gold traded near $4,509, down marginally, while the 30-year Treasury yield climbed as high as 5.27% before easing to about 5.25%. The article linked the market action to investors weighing whether Treasury buybacks can contain long-term borrowing costs as US public debt surpasses $40 trillion.
The rally also followed a Treasury decision Wednesday to at least double buybacks of longer-dated bonds, and Mining.com reported Treasury Secretary Scott Bessent told CNBC on Thursday that buybacks could be more than the $4 billion planned for next month. Bessent also said the administration would unveil a fiscal consolidation plan by the end of this week or early next week.
Despite the intervention, bond strategists remained skeptical that larger buybacks would change the broader path of yields. The report cited views that buybacks may provide liquidity and demand at the long end but do not address the fiscal pressures that keep investors seeking higher returns on longer-dated government debt.
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