Gold hovers near early-June high on lower bond yields
Gold prices soared close to a two-month peak on Thursday after the U.S. Treasury announced bolstered liquidity measures. With yields falling and the dollar weakening, gold became increasingly attractive to investors. This move comes in light of persistent inflation fears and looming interest rate hikes, highlighting gold's reputation as a secure haven during times of financial instability.
Gold prices showed a brief surge near their highest level in over two months on Thursday, following a surprise announcement by the U.S. Treasury to double liquidity support buyback operations for longer-dated notes and bonds. This move caused yields and the U.S. dollar to fall. Spot gold, initially at $4,512.19 per ounce, hit its highest level since June 2 at $4,525.79 before settling slightly below that amount.
U.S. gold futures for December delivery also rose 0.6% to $4,569.80. The lower dollar made greenback-priced metals more affordable for international buyers. Meanwhile, total U.S. debt surpassed the $40 trillion mark for the first time, raising concerns about an impending fiscal crisis due to soaring costs for social safety-net programs and interest payments.
This led to increased expectations of higher interest rates, though the Federal Reserve has not yet signaled a change in policy.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
