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Gold rebounds above $4,500 as Treasury yields stabilize after buybacks

Gold traded around $4,522 after an intraday dip to $4,456, supported by an announced increase in longer-dated government securities liquidity-support buybacks.

Reported · Written up by our desk · Precious Metals

Gold prices regained ground during US trading on Thursday, climbing back above $4,500 even as US Treasury yields rebounded and the US dollar stabilized after the prior day’s sharp pullback, according to FXStreet.

At the time of writing, XAU/USD was trading around $4,522, after recovering from an intraday low of $4,456. The metal rose more than 4% on Wednesday following a US Treasury announcement that it would increase liquidity-support buybacks for longer-dated government securities.

The Treasury move pushed the 30-year yield down about 9 basis points to 5.18% and the 10-year yield down roughly 5 basis points to 4.63%. Analysts cited by FXStreet said the buybacks may ease near-term pressure in rates, but they do not resolve large fiscal deficits, heavy debt issuance, or persistent inflation risks that underpin demand for gold as a hedge.

FXStreet also pointed to expectations for Fed policy, with CME FedWatch pricing a 65% chance the Fed will keep rates unchanged in September. On the week’s US data, initial jobless claims fell to 206,000, below market expectations and the prior reading, while the US Dollar Index was around 98.80 after hitting 98.56 earlier in the session.

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

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