Gold holds above $4,500 as Treasury yields retreat
Gold holds above $4,500 an ounce after surging more than 4% in the previous session, supported by a sharp retreat in US Treasury yields and Treasury debt repurchase plans.
Gold held above $4,500 an ounce on Thursday after surging more than 4% in the previous session, underpinned by a sharp retreat in US Treasury yields as the government moved to rein-in long-term borrowing costs.
The US Treasury Department announced it will more than double repurchases of 10-, 20- and 30-year debt in the next few months as the 30-year yield surged to its highest level since 2007 earlier this week.
Lower borrowing costs reduce the opportunity cost for markets to hold precious metals, which carry no coupons, making them more attractive to investors.
Meanwhile, minutes of the Federal Reserve's July meeting confirmed that some policymakers argued in favor of raising interest rates this year to prevent sharper inflationary pressure later on.
Elsewhere, heightened uncertainty in the Middle East as the US and Iran remain at a stalemate kept inflationary risks in focus.