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Gold slips after profit-taking as Treasury buybacks pressure yields

Spot gold fell 0.7% to $4,487.63 per ounce after bullion topped $4,525.79 the prior session.

Reported · Written up by our desk · Precious Metals

Gold prices edged lower on Thursday after investors locked in profits following a surge to a more than two-month high, as a surprise US Treasury move helped push long-term yields down and weakened the dollar, according to LiveMint Markets. Spot gold fell 0.7% to $4,487.63 per ounce, while US gold futures were largely unchanged at $4,545.60.

The rally was triggered by a US Treasury announcement that it would significantly increase buybacks of long-dated government bonds, with the department saying it would raise the size of liquidity-support buyback operations by at least two times for securities maturing in the 10 to 30 year range. The buyback plan was also paired with the Treasury disclosing that total US public debt had crossed $40 trillion for the first time.

In the domestic market, gold on the Multi Commodity Exchange (MCX) edged up slightly to ₹1,58,300 per 10 grams. LiveMint Markets noted that gold does not pay interest, which can make it more attractive when yields retreat, though easier financial conditions could reduce the opportunity cost of holding non-yielding assets like gold.

Kotak Securities’ Kaynat Chainwala said spot gold’s retreat below $4,500 per ounce looks more like consolidation than a reversal of the broader bullish trend. She pointed to $4,400 as a key downside support level, and noted gold has stayed above $4,000 in recent weeks, even as it remains about 15% below its pre-US-Iran conflict level that began in late February.

Latest closeGold $4,432.00 ▲1.6%

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