Gold retreats after scaling over 2-month peak on US Treasury move
GLD•Other metals also ease
Among other metals, spot silver XAG= fell 0.5% to $66.60 per ounce, platinum XPT= dropped 1.6% to $1,794.91, and palladium XPD= slid 0.5% to $1,325.94.
Gold pulls back after sharp rally
Aug. 20 (Reuters) - Gold fell on Thursday as investors booked profits after prices climbed to a more than two-month peak on a surprise U.S. Treasury liquidity-support announcement for long-duration bonds, which weakened the dollar and lowered Treasury yields.
Spot gold XAU= was down 0.7% to $4,488.19 per ounce by 0750 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 $4,546.30.
Treasury move, debt concerns and Fed minutes support bullion
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/
The U.S. dollar was hovering near three-month lows. USD/
"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," said Ilya Spivak, head of global macro at Tastylive.
"The $4,400 to $4,500 price range has been cleared. If prices hold above this range, the upward momentum is likely to continue."
Meanwhile, total U.S. debt outstanding topped $40 trillion for the first time, drawing fresh warnings of fiscal crisis.
"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," said Edward Meir, Marex analyst.
