XAU/USD Gold rises when long-term rates decline due to a Treasury
XAU/USD approaches the $4,500 mark, the US dollar's weakening lends support. Jobless claims and Fed minutes continue to be important market drivers. Due to the US Treasury's buyback of long-dated bonds and declining US government rates, gold (XAU/USD) surged on Wednesday. The XAU/USD pair is now trading at $4,495, up more than 3.70% for the day and at its best level since June
US Treasury rates continued to decline during the session, the US Treasury repurchase was responsible for the rise in bullion. After reaching its peak since 2007 on Tuesday, the US 30-year yield fell more than eight basis points to 5.20%. Concurrently, the yield on the US 10-year benchmark note has dropped to 4.660%, a decrease of nearly five basis points. "This administration needs a win, and maybe that comes in the form of artificially trying to keep long Treasury rates contained," according to sources quoted by
's important to note that US bond rates have grown significantly since July due to rising energy costs brought on by the ongoing Middle East war, which has raised US inflation forecasts. In addition, despite declining prices, the Federal Reserve (Fed) has maintained interest rates at its last five sessions. The depreciation of the dollar also helps the non-yielding metal. The US Dollar Index (DXY), which compares the value of the US dollar to a basket of six peers, is down 0.80% at 98.85.
