Gold hovers near early-June high on lower bond yields

Gold hovers near early-June high on lower bond yields. Spot gold was little ‌changed at $4, 512.19 per ounce.

Key points

• As of 0031 GMT, after hitting its highest level since June 2 at $4, 525.79 earlier in the day, spot gold was little ‌changed at $4, 512.19 per ounce.
• Traders are pricing in a 67.3% chance that the Fed will keep rates unchanged and a 32.7% chance of a rate growth in September, according to the CME FedWatch Tool.
• Diesel gets massive Rs32.63 cut as petrol cost rises Rs2.97 per litre.
• Fixed Tax Asaan Scheme: App rolled out for tax returns of small traders.
• Gold rates neared a two-month high due to the US Treasury's liquidity backing.

Gold rates neared a two-month high due to the US Treasury's liquidity backing. It lowered yields and the dollar, despite Federal Reserve reservations concerning inflation and potential rate hikes. US Treasury's liquidity backing and lower yields. Federal Reserve's inflation reservations and potential rate hikes. Add BRecorder as a trusted source on Google.

Gold hovered near its highest level in more than two months on Thursday after a surprise liquidity backing announcement by the US Treasury pushed yields and the dollar lower.

As of 0031 GMT, after hitting its highest level since June 2 at $4, 525.79 earlier in the day, spot gold was little ‌changed at $4, 512.19 per ounce. Rates jumped more than 4% on Wednesday. US gold futures for December delivery rose 0.6% to $4, 569.80.

Yields on long-dated US Treasuries fell, with the rose demand after an ⁠announcement that the Treasury Department would double the size of liquidity backing buyback operations for longer-dated notes and bonds.

For context, the US dollar remained subdued, making greenback-priced metals less expensive for buyers holding other currencies.

Total US debt has topped $40 trillion for the first time, the Treasury Department remarked on Wednesday, drawing fresh warnings that a fiscal crisis is brewing as ballooning costs for social safety-net programmes and interest payments far outstrip revenues held back by tax cuts.

Concern regarding inflation ‌deepened ⁠at the Federal Reserve's gathering last month, with "several" policymakers ready to raise interest rates and "plenty of" saying a hike in borrowing costs would be needed if inflation does not decline to the US central bank's 2% target, the minutes of the session demonstrated on Wednesday.

Traders are pricing in a 67.3% chance that the Fed will keep rates unchanged and a 32.7% chance of a rate growth in September, according to the CME FedWatch Tool. Gold heads for weekly loss as investors unwind inflation-fuelled rally.

While higher interest rates reduce its appeal as it yields no interest, gold is considered a safe investment during geopolitical and economic turmoil. Among other ⁠metals, spot silver gained 0.2% to $67.06 per ounce. While palladium rose 0.3% to $1, 339.05, platinum fell 0.4% to $1, 816.78.

Gold pauses after tame US inflation fuels rally to over two-month peak. Oil rates steady as investors assess US-Iran war outlook.

Diesel gets massive Rs32.63 cut as petrol cost rises Rs2.97 per litre. Excluding IMF loan: Total debt reaches Rs81.9trn by 11MFY26: Aurangzeb. Govt challenges SC verdict in IK treatment case. KE seeks SIFC backing to resolve ICP problem. Discos asked to install AMI meters at govt offices. Housing finance: SBP revises prudential regulations. Pakistan sustains USD2bn post-harvest losses annually: ADB.

Fixed Tax Asaan Scheme: App rolled out for tax returns of small traders. ECC approves international tenders to export surplus sugar.

Taken together, the developments around gold hovers near early point to a situation that is still moving, and the coming days should bring more clarity.