Gold Hits $4416 as US 20-Year Yield Nears 5.28% on Debt Fears
Updated
Updated · BullionVault · Aug 17
Gold Hits $4416 as US 20-Year Yield Nears 5.28% on Debt Fears
3 articles · Updated · BullionVault · Aug 17
Summary
$4,416 per ounce marked gold’s intraday peak Monday before it eased to about $4,385, extending gains as investors rotated toward safe havens.
A 5.28% yield on 20-year Treasurys and the highest auction rates since 2007 for 10-year debt and since 2001 for 30-year bonds sharpened concern over US borrowing costs and long-term debt sustainability.
The yield curve steepened further as 2-year Treasurys yielded 4.18%, while the dollar fell 0.3% to its lowest since early June after weak US jobs, inflation and retail sales data cut September Fed hike odds to below one-in-three.
$16 billion of new 20-year Treasury supply due Wednesday keeps focus on heavy issuance, a $40 trillion US debt pile and the risk that fiscal strains continue to support gold over government bonds.