On Wednesday, gold staged a dramatic reversal following heavy profit‑taking in the prior session. Triggered by the US Treasury’s bond‑market intervention and the release of the Fed’s last‑month meeting minutes, both the US Dollar and US Treasury yields retreated. Spot gold rebounded strongly from lower levels and reclaimed the $4,500.00‑per‑ounce threshold, fully demonstrating how highly sensitive the current gold market is to US fiscal and monetary policies. Spot gold hit an intraday high of $4,524.38 per ounce and closed at $4,522.72 per ounce, logging a hefty 4.35% single‑day gain. On Thursday, US Treasury yields bounced modestly and hawkish Fed rhetoric weighed slightly on gold, though a soft US Dollar capped losses. At press time, spot gold had edged down to $4,489.95 per ounce. Technical indicators show prices are near overbought territory, yet underlying bullish momentum remains intact.

The US Treasury’s Wednesday announcement to expand its long‑term Treasury buyback programme boosted gold and reversed pressure on non‑yield‑bearing gold caused by rising bond yields. The US Treasury raised the upper limit for buybacks of 10‑to‑20‑year and 20‑to‑30‑year Treasury securities from $2 billion to a minimum of $4 billion per operation. The larger‑scale refinancing operations are scheduled to begin on September 9 and run until November 4 at quarter‑end. Earlier, the 30‑year US Treasury yield had spiked above 5.3%, hitting its highest level since 2007. Following news of the Treasury intervention, the 30‑year yield fell nearly 10 bASIs points to around 5.19%, and the 10‑year yield dropped by a comparable margin.

The Fed’s July meeting minutes struck a cautious‑hawkish tone; several officials noted that further monetary tightening could not be ruled out if inflation stays elevated. Three officials dissented against holding rates steady at the July meeting and favoured a 25‑bASIs‑point hike, yet markets had already priced in hawkish signals and no sell‑off ensued. The probability of unchanged rates in September rose above 67%, further cooling rate‑hike expectations and offering ongoing support to gold. On the geopolitical front, the 60‑day US‑Iran negotiation window expired without a deal. Middle‑East tensions keep swinging oil‑price and inflation expectations. While geopolitical risks may partly cap gold via higher oil prices in the short run, geopolitical uncertainty remains a key pillar for gold’s safe‑haven demand over the medium‑to‑long term.

Short‑term gold outlook: immediate resistance stands at $4,775.00 per ounce, while downside support is seen at $4,300.00 per ounce.

Spot Gold Daily Chart

[Disclaimer]The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of SinoSound. SinoSound remains neutral regarding the opinions and statements contained herein and makes no representations or warranties, whether express or implied, regarding the accuracy, reliability, or completeness of the information provided.
The content of this article is intended for informational and reference purposes only. Readers should exercise their own judgment and assume full responsibility for any decisions or actions taken based on the information contained herein.

[Copyright Notice]This article is original content and is protected by applicable copyright laws. Any reproduction, distribution, citation, or use of this content must clearly acknowledge the original source:
Gold2U
www.gold2u.com
We reserve all rights and may take legal action against any individual or entity that fails to comply with this notice or otherwise infringes our intellectual property rights.