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Gold rises above $4,650 as dollar weakens and Treasuries plan buybacks

The rally is also tied to falling long-term yields after US Treasury bond buyback plans that could exceed $4 billion, according to FXStreet.

Reported · Written up by our desk · Precious Metals

Gold prices climbed to around $4,670, the highest level since May 14, extending the advance in early Asian trade on Wednesday, FXStreet reported.

The move is linked to a weaker US dollar and to US Treasury bond buyback plans, which have pushed long-term yields lower and encouraged short covering, according to the outlet.

FXStreet also pointed to rising geopolitical risk, noting that an expansion of secondary sanctions tied to Iran could keep energy-driven inflation concerns on the radar and affect expectations for Federal Reserve rate hikes.

Traders are watching a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium on Friday for clues on the interest-rate outlook, with the report adding that higher-rate expectations can cap gold’s upside.

Latest closeGold $4,432.00 ▲1.6%

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