Gold hovered near its highest level in more than two months on Thursday after a surprise liquidity support announcement by the U.S. Treasury pushed yields and the dollar lower.FUNDAMENTALSSpot gold was little changed at $4,512.19 per ounce, as of 0031 GMT, after hitting its highest level since June 2 at $4,525.79 earlier in the day. Prices jumped more than 4% on Wednesday.U.S. gold futures for December delivery rose 0.6% to $4,569.80.Yields on long-dated U.S. Treasuries fell, with the increased demand following an announcement that the Treasury Department would double the size of liquidity support buyback operations for longer-dated notes and bonds. [US/]The U.S. dollar remained subdued, making greenback-priced metals less expensive for buyers holding other currencies. [USD/]Total U.S. debt has topped $40 trillion for the first time, the Treasury Department said on Wednesday, drawing fresh warnings that a fiscal crisis is brewing as ballooning costs for social safety-net programmes and interest payments far outstrip revenues held back by tax cuts.Concern about inflation deepened at the Federal Reserve's meeting last month, with "several" policymakers ready to raise interest rates and "many" saying a hike in borrowing costs would be needed if inflation does not decline to the U.S. central bank's 2% target, the minutes of the session showed on Wednesday.Traders are pricing in a 67.3% chance that the Fed will keep rates unchanged and a 32.7% chance of a rate increase in September, according to the CME FedWatch Tool.Gold is considered a safe investment during geopolitical and economic turmoil, while higher interest rates reduce its appeal as it yields no interest.Among other metals, spot silver gained 0.2% to $67.06 per ounce. Platinum fell 0.4% to $1,816.78, while palladium rose 0.3% to $1,339.05. DATA/EVENTS (GMT) 0100 China Loan Prime Rate 1Y, 5Y Aug1230 US Initial Jobless Clm 15 Aug, w/e1230 US Philly Fed Business Indx Aug
Gold hovers near early-June high on lower bond yields
Gold prices soared close to a two-month peak on Thursday after the U.S. Treasury announced bolstered liquidity measures. With yields falling and the dollar weakening, gold became increasingly attractive to investors. This move comes in light of persistent inflation fears and looming interest rate hikes, highlighting gold's reputation as a secure haven during times of financial instability.










