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Reuters reported that gold fell on Thursday as investors booked profits after the metal climbed to a more-than-two-month peak, driven by a surprise US Treasury liquidity-support announcement for long-duration bonds that weakened the dollar and pushed Treasury yields lower. Spot gold was down 0.7 percent to $4,488.19 per ounce by 0750 GMT after earlier trading as high as $4,525.79, its strongest level since June 2, following a more than 4 percent advance the previous session. US gold futures were little changed at $4,546.30.
The US Treasury Department said it would double the size of liquidity support buyback operations for longer-dated notes and bonds. That decision followed a major bond selloff in which investors demanded higher returns amid heightened inflationary risks linked to the US-Israeli war on Iran. The resulting drop in yields and softer dollar provided a tailwind for bullion before Thursday’s reversal took hold.
Tastylive head of global macro Ilya Spivak said the scale of the prior rally pointed to an inevitable period of consolidation. “There was obviously a huge rally (in gold), and there’s going to be a degree of digestion in markets after a big move like that,” Spivak said. He noted that the $4,400 to $4,500 price range had been cleared, adding that upward momentum was likely to continue if prices hold above this level. Marex analyst Edward Meir stated that increasing concern about the financial stability of the market with borrowing and debt and the inability to cut spending on the fiscal side is very bullish for gold.
Minutes from the Federal Reserve’s meeting last month showed deepening concerns over inflation, with several policymakers indicating they were ready to raise interest rates. Traders are currently pricing in a 69 percent chance of the Fed holding rates steady and a 31 percent chance of a hike in September, according to the CME FedWatch Tool. While gold is typically viewed as a hedge against inflation, higher interest rates tend to diminish the appeal of the non-yielding metal.
Trading Economics data places gold’s gain over the past month at 9.96 percent, with the metal up 34.26 percent compared with the same time last year. The commodity reached an all-time high of $5,608.35 in January 2026 before moderating from those peaks in subsequent months. The latest price action came one day after the US national debt surpassed $40 trillion for the first time, according to official tallies that have amplified fiscal stability concerns.
Market updates showed spot silver fell 0.5 percent to $66.60 per ounce in the same session. Platinum dropped 1.6 percent to $1,794.91 per ounce while palladium slid 0.5 percent to $1,325.94. These shifts across precious metals reflected the broader market reaction to the interplay of fiscal policy signals and monetary expectations.
