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Gold heads for third straight weekly gain as Treasury buybacks ramp up
Bullion was near $4,530 an ounce and on track for more than a 3% weekly rise after the Treasury signaled it could expand buybacks of higher-cost long-dated debt.
Gold was set for a third consecutive weekly gain after the US Treasury unexpectedly stepped up buybacks of long-dated government debt, reinforcing investor concern over the borrowing burden, LiveMint Markets reported.
The story said bullion was trading around $4,530 an ounce and poised to end the week up more than 3%. It also attributed gold’s lift to a surprise liquidity injection on Wednesday that pushed yields and the US dollar lower, even after yields later retraced much of the move.
On Thursday, Treasury Secretary Scott Bessent said he is prepared to expand buybacks of more expensive debt and that the administration would soon unveil a fiscal initiative aimed at addressing the highest borrowing costs in years, according to LiveMint Markets.
The article added that gold could face a headwind if energy prices rebound, since that can keep inflation risks and rate-hike expectations in play. At the time of writing, spot gold was up 0.2% to $4,522.90 an ounce, while silver rose 0.1% to $68.16 an ounce.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%