Uptrend in Gold Prices: Ounce Price Reaches $4,650 Level
Following the US Treasury Department's debt buyback move, bond yields and the dollar declined, while demand for precious metals increased. Gold thus reached its highest levels recorded since mid-May.
Driven by concerns over the US fiscal outlook, geopolitical risks, and global trade uncertainties, the price of gold per ounce continued its rise, reaching approximately $4,650.
US Fiscal Policies and Market Reaction
The US Treasury Department's unexpected expansion of its long-term debt buyback program reignited concerns regarding the country's debt management and fiscal outlook. This led to a decline in bond yields and the dollar while accelerating investors' search for a hedge against depreciation.
Geopolitical Risks and Trade Tensions
New US sanction threats against Iran triggered fears of potential oil supply disruptions. As it was anticipated that a potential rise in energy prices could limit the Fed's rate cut steps, Canada's plans for retaliatory tariffs on US goods also increased uncertainties.
Intraday Price Movements and Market Focus
Starting the day at $4,623, gold per ounce traded at $4,636 after fluctuating between $4,594 and $4,656 during the day. Meanwhile, gram gold moved within the range of 7,103 to 7,196 liras, reaching 7,169 liras. Markets are awaiting the upcoming July PCE inflation data and Fed Chair Warsh's speech at Jackson Hole.