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Gold slips as US Treasury yields rebound and the dollar stabilizes
Gold eased from an intraday high near $4,527, and Thursday trading came as markets raised the odds of the Fed holding rates unchanged in September to 65%.
Gold weakened in US trading hours on Thursday, with XAU/USD staying on the back foot as Treasury yields rebounded and the US Dollar stabilized after a sharp prior-day pullback, FXStreet said.
The price was around $4,486, down from an intraday high of $4,527, its highest level since June 2. FXStreet noted gold had jumped more than 4% on Wednesday after the US Treasury Department announced it would increase its liquidity-support buybacks for longer-dated government securities.
That Treasury move helped cool the bond market temporarily, with the 30-year Treasury yield falling about 9 basis points to 5.18% and the 10-year dropping around 5 basis points to 4.63%. Still, yields were up modestly on Thursday, about 6 basis points for both maturities, while analysts warned the buybacks do not resolve large fiscal deficits, heavy debt issuance, or persistent inflation risks.
FXStreet also pointed to currency and rate signals behind the pressure on gold. The US Dollar Index recovered to around 98.80 after falling below 99.00 to a three-month low on Wednesday, supported by initial jobless claims falling to 206K versus 210K expected, while CME FedWatch data showed a 65% chance the Fed keeps rates unchanged in September.
Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%