Gold Price Holds Near $4,500 as Treasury Bond Buybacks Push Yields Lower

TLDR

• Gold futures edged up 0.1% to $4,549.14, holding near the $4,500 level after a 4% surge Wednesday
• The U.S. Treasury announced it would double the size of its bond-buyback program, pushing long-dated yields lower
• Fed minutes from July showed several officials were open to raising rates if inflation stays elevated
• Markets currently price in a 67.3% chance the Fed holds rates steady at September’s meeting
• A World Gold Council survey found 45% of central banks plan to increase gold reserves

Gold prices are holding near $4,500 an ounce after a strong rally Wednesday, supported by lower Treasury yields and a weaker U.S. dollar. The metal dipped slightly in early Thursday trading but remains close to its recent highs.

At 02:37 ET, spot gold fell 0.7% to $4,491.95 an ounce, while gold futures edged up 0.1% to $4,549.14. Silver rose 0.1% to $67.08 an ounce, while platinum slipped 0.8% to $1,807.32.

Treasury Buybacks Drive Yields Down

The main driver behind Wednesday’s jump was a surprise announcement from the U.S. Treasury. It said it would at least double the size of some of its bond-buyback operations tied to longer-dated government debt.

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