Gold hovers near early-June high on lower bond yields

Business Recorder reported that spot bullion held roughly flat near $4,512.19 an ounce early on Thursday, having earlier reached $4,525.79, its strongest point since June 2. Prices had jumped more than 4% the previous day. The advance followed an unexpected Treasury move to expand liquidity support, which lowered long-dated US bond yields and weakened the dollar.

Yields on long-dated Treasuries declined as investors responded to the Treasury's plan to double the size of its buyback operations for longer maturities. A weaker dollar made gold cheaper for buyers using other currencies. Separately, total US debt exceeded $40 trillion for the first time, the Treasury said on Wednesday, prompting warnings of a fiscal crisis.

Minutes of the Federal Reserve's latest meeting showed inflation concerns deepening, with several policymakers ready to raise rates. Traders put a 67.3% chance on unchanged rates in September and 32.7% on a hike, according to the CME FedWatch Tool. Since gold pays no interest, higher borrowing costs typically reduce its appeal, although it is still regarded as a safe asset in times of stress.