Gold prices crossed the $4,500 mark for the first time since early June, buoyed by a sharp decline in U.S. Treasury yields and a weaker dollar. The move signals renewed demand for bullion as investors seek safe‑haven assets.
At 03:47 AM GMT, COMEX gold futures were up 0.22 percent to $4,555.50 per ounce. Silver also rose, gaining 2.05 percent to $67.17 per ounce. The London Bullion Market Association (LBMA) spot gold price stood at $4,460.70 per ounce in the PM fixing on August 19.
In India, the domestic spot gold price on the MCX exchange recovered to around Rs 1,54,300 per 10 grams on Wednesday. This reflects the global rally in gold prices.
Gold prices vary by karat and city. The cost of 10 grams of 24‑karat, 22‑karat, and 18‑karat gold moved in line with the global trend, showing a consistent upward trajectory.
The U.S. Treasury announced that it would double its buyback operations for longer‑dated bonds from $2 billion to $4 billion per operation, starting September 9. This move increased liquidity at the long end, pulled the 30‑year yield down to about 5.19 percent, and weakened the dollar.
Minutes from the Federal Reserve’s July meeting revealed that policymakers remain concerned about persistent inflation. Several officials indicated that further rate hikes could become necessary if price pressures fail to moderate. The minutes also highlighted inflation risks from the Middle East conflict and prolonged supply disruptions.
Oil prices stayed elevated as tensions in the U.S.–Iran standoff over the Strait of Hormuz continued, keeping energy‑driven inflation risks alive. These factors added to the overall uncertainty in the markets.
Manav Modi, a commodities analyst at Motilal Oswal Financial Services, said that the easing of long‑term yields, the weakening dollar, and fiscal concerns have boosted demand for alternative stores of value. He added that China kept its loan prime rate unchanged, and that market focus will shift to U.S. weekly jobless claims and the Philly Fed manufacturing index.