XAU/USD rises to $4,530 after the US Treasury announces plans to double bond repurchase operations to $4 billion.
Gold prices (XAU/USD) rose to $4,530 in early Asian trading Friday, recovering from earlier losses after the US Treasury announced an expansion of its bond buyback program. The move aims to curb rising borrowing costs by increasing repurchases of longer-dated securities from $2 billion to at least $4 billion per operation.
The decision follows a sharp increase in long-term bond yields, driven by concerns over energy-driven inflation. Markets have slightly reduced expectations for a Federal Reserve rate hike, with a 36.2% probability for the next meeting, down from 47% a month ago.
Analysts note that while gold benefits from liquidity support, its upside may be limited if inflation pressures persist, reducing its appeal as a non-yielding asset.