Gold Rebounds Above $4,400 Amid US Bond Buyback Shift
Gold reclaimed the $4,400 mark as US Treasury buybacks expanded to $6 billion. Silver approached $68, while platinum broke above $1,900 on supply concerns.
Gold settled back above the $4,400 level. The rebound followed the US Treasury’s decision to raise bond buybacks to $6 billion. Silver moved toward the $68.00 mark. Platinum traded above the $1,900 threshold.
The Treasury increased buybacks from $2 billion to $4 billion in late August. That move failed to stabilize the debt market. Yields on 10-year Treasuries remained above 4.83%. Thirty-year yields tested the 5.30% level. The US dollar weakened against a broad basket of currencies.
Treasury Actions Drive Metal Gains
Traders view the buyback program as a positive catalyst for precious metals. Central banks continue buying gold to diversify away from the US dollar. They cite sanctions and rising US debt as key concerns. Higher yields typically pressure non-interest-bearing assets like gold. However, fears of debt market instability favor safe-haven assets.
The Federal Reserve is expected to raise rates by 25 basis points next week. The probability of a hike stands at 62.4%. Brent oil prices exceeded $100 due to Middle East tensions. A hawkish stance could limit near-term gains for gold. Traders await the decision to gauge the next move.
Silver and Platinum Face New Targets
The gold-silver ratio dropped toward 65.00. A break below 65.00 would push the ratio toward 62.00. Silver could test the $70.00 level if it clears $68.00. Resistance sits in the $71.00 to $72.00 range. Palladium prices rose by 1.2%.
Platinum is testing resistance between $1,870 and $1,890. A successful breakout would target the $1,950 to $1,970 zone. Market deficits support platinum demand. According to GN auto markets/bonds: bond trading, the current volatility reflects broader debt market stress. Gold aims for the $4,480 to $4,500 resistance range.
