Gold Futures Hit $4,580 After Treasury Bond-Buying Plan Cuts Yields
Updated
Updated · Yahoo Finance · Aug 20
Gold Futures Hit $4,580 After Treasury Bond-Buying Plan Cuts Yields
3 articles · Updated · Yahoo Finance · Aug 20
Summary
$4,580 an ounce marked Thursday’s open for December gold futures, up 0.8% from Wednesday and lifting gold above $4,500 for the first time since early June.
The rally followed the U.S. Treasury’s plan to increase long-term bond purchases, which pushed the 10-year yield down more than 5 basis points and the 30-year yield down 9 basis points.
Fed minutes released the same day showed several policymakers argued for rate increases, but traders focused more on the Treasury move because lower yields reduce gold’s holding cost versus interest-bearing assets.
$4,535.80 was the spot level by 9:03 a.m. ET, leaving gold still up 4% from a week ago, 14.4% from a month ago and 38.3% from a year earlier.