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Gold trims gains near record levels as Treasury yields and dollar cool

XAU/USD eased from an intraday high near $4,527, after Treasury buybacks for longer-dated securities pushed the 30-year yield down about 9 basis points to 5.18% and the dollar index below 99.0.

Reported · Written up by our desk · Major Pairs

Gold prices held near recent highs on Thursday, trading around $4,488 after pulling back from an intraday high of $4,527, its strongest level since June 2, according to FXStreet.

The earlier surge followed a sharp pullback in long-term US Treasury yields tied to the Treasury Department increasing liquidity-support buybacks for longer-dated government securities. In response, the 30-year Treasury yield fell about 9 basis points to 5.18%, while the 10-year yield dropped roughly 5 basis points to 4.63%.

FXStreet also noted that the US Dollar Index, which measures the greenback against a basket of six major currencies, slid below 99.0 to a three-month low and continued to lose ground on Thursday. With the dollar weaker and Treasury yields lower, gold benefited because it does not pay a yield.

Despite the relief from buybacks, analysts cited by FXStreet warned the move does not address large fiscal deficits, heavy debt issuance, or persistent inflation risks. Energy prices were also flagged as a contributor to inflation concerns amid restrictions on shipping through the Strait of Hormuz, with WTI oil trading around $86.25 per barrel and up roughly 6% for the week.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%|Dollar index 99.64 ▼0.3%

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