Gold retreats after scaling over 2-month peak on US Treasury move

Among other metals, spot silver XAG= held steady at $66.90 per ounce, platinum XPT= dropped 1.4% to $1,798.41, and palladium XPD= slid 0.5% to $1,325.95.

Concerns over inflation deepened at the Federal Reserve's meeting last month, with "several" policymakers ready to raise interest rates, minutes of the session showed on Wednesday.

Traders are currently pricing in a 69% chance of a Fed hold and a 31% chance of a rate hike in September, according to the CME FedWatch Tool. FEDWATCH/

While gold is typically seen as a hedge against inflation, higher interest rates tend to diminish non-yielding bullion's appeal.

Gold fell on Thursday as investors booked profits after prices climbed to an over two-month peak on a surprise U.S. Treasury liquidity-support announcement for long-duration bonds, which weakened the dollar and sent Treasury yields lower.

Spot gold XAU= was down 0.7% at $4,487.63 per ounce by 0604 GMT. Earlier, bullion was at $4,525.79, its highest since June 2, after a more than 4% advance on Wednesday.

U.S. gold futures GCcv1 were little changed at $4,545.60.

The U.S. Treasury Department said it would double the size of liquidity support buyback operations for longer-dated notes and bonds. That came after a major bond selloff as investors demanded higher returns on the back of increased inflationary risks stemming from the U.S.-Israeli war on Iran. US/