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Gold pulls back as US Treasury yields recover and the dollar firms
XAU/USD is down about 0.3% after a sharp Wednesday jump, with US Initial Jobless Claims for the week ending Aug. 15 falling to 206K.
Gold (XAU/USD) retreated about 0.3% on Thursday as US Treasury yields trimmed some of their Wednesday declines, while a firmer US dollar added pressure on bullion, FXStreet said. The pair last traded around $4,509 after touching a daily high near $4,540.
The dollar strength was reflected in the US Dollar Index (DXY), which rose about 0.1% to 98.91, weighing on gold prices. Despite the pullback, gold is still described as bullish-biased.
Traders linked the move to recent US Treasury activity and rate expectations. On Wednesday, the US Treasury announced an adjustment to its bond buyback program, targeting liquidity in the 10- to 30-year segment, and some market participants interpreted it as potentially discouraging a jump in the 30-year yield.
US data and Fed commentary also contributed to the shifting sentiment, with FXStreet noting that Initial Jobless Claims for the week ending August 15 came in at 206K, below the 210K expected. The report also cited St. Louis Fed President Alberto Musalem and San Francisco Fed President Mary Daly comments on the bond market, alongside money-market pricing that implied a roughly 68% chance the Fed holds rates in September and about a 32% chance of a 25 basis point hike.
Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%