Gold jumps to over 2-month high near $4,530/oz
Gold prices rose to $4,530 per ounce on Thursday, holding the prior rally at the highest since June, as US Treasury bond-market actions lowered the dollar.
Gold prices rose to $4,530 per ounce on Thursday, holding yesterday's rally at the highest since June as the US Treasury's intervention on bond markets lowered the dollar and reignited the debasement trade.
The Treasury Department at least doubled the buyback of notes and bonds in the upcoming financial quarter.
It marked another effort by Washington to contain soaring yields in the longer portion of the curve, following Secretary Bessent's call for higher limits on the Federal Reserve's FIMA facility.
Lower borrowing costs reduce the opportunity cost for markets to hold precious metals, which carry no coupons.
The looming increase in deficit spending combined with expectations that the US government is actively suppressing borrowing costs strengthened calls that precious metals are the ideal protection to downside risks to the dollar's purchasing power.