Commodities
Home›Commodities›Precious Metals›Gold edges higher near $4,530 after Treasury boosts lo…
Gold edges higher near $4,530 after Treasury boosts long bond buybacks
Gold recovered after earlier losses tied to a larger-than-expected ramp in longer-dated Treasury repurchases, while markets still price a 36.2% chance of a Fed hike.
Gold prices (XAU/USD) rose to around $4,530 in early Asian trade on Friday, after moving lower previously on the back of an unexpected shift in US longer-dated Treasury repurchase plans, according to FXStreet.
US Treasury Secretary Scott Bessent said the Treasury could increase bond buybacks beyond $4 billion, partly to signal that current yields do not reflect underlying economic fundamentals. The report also noted that the Treasury Department previously said it would buy back more of its longer-term bonds to help curb a sharp increase in borrowing costs, citing Bloomberg.
Even with the bounce, FXStreet said gold’s upside could be limited by energy-driven inflation concerns, which could keep expectations for Federal Reserve rate increases alive. The article added that CME FedWatch tool data shows markets pricing a 36.2% chance of a Fed rate hike at the upcoming policy meeting, down from 47% a month earlier.
FXStreet also flagged that gold does not pay interest, which can make it less attractive when yields are high. It cited TD Securities saying policy signals from Washington could support bullion near term, while technicals show spot holding above the 100-day SMA and the RSI(14) near 67.5, suggesting strong momentum that could be vulnerable to consolidation.
Latest closeGold $4,432.00 ▲1.6%