With the expansion of the United States Treasury to buy back long-term national debt, long-term United States debt yields have fallen and the United States dollar has weakened, pushing gold to continue on Wednesday. At one point, the cash drive returned above $4,500 per ounce, up from about two months, with gold futures in New York receiving $4545.30.

Treasury's repurchases are down at the long end.

The direct catalytic effect of this round is not from the Fed, but from the United States Treasury bond operating arrangements. The Ministry of Finance announced a doubling of the scale of long-term public debt buy-backs to ease the pre-existing overhang of the long-debt market.

As a result, the annual rate of return on United States debt fell close to 10 basis points, to about 5.19 per cent. On the previous trading day, the return on that period had risen to 5.337 per cent, a high since 2007.

Gold itself does not generate interest. Long-end rates of return have lagged behind and the opportunity cost of holding gold has declined, which has supported the price of precious metals. At the same time, the decline in the United States dollar index of about 0.8 per cent has also increased the attractiveness of gold to overseas buyers.

The Fed's record is uncontrollable.

The Fed subsequently published the minutes of its meeting from 28 to 29 July. The minutes show that there are concerns at the decision-making level about the adhesiveness of inflation, that several officials were prepared to support interest rates, and that many were of the view that if inflation did not continue to fall back to the 2 per cent target, further tightening of the policy might be required.

Ultimately, however, the Fed maintained interest rates between 3.50 and 3.75 per cent, with only three officials supporting the 25 basis points. Following the publication of the proceedings,2 a small increase in annual United States debt yields reflects a short-end more sensitive attitude towards hawks; however, the long-end rates of return are still influenced by information from the Treasury.

Precious metal plate synchronised.

  • It was $4,500 in a cash drive.
  • Silver's up nearly 4%.
  • The platinum rose by about 5.1% and the platinum by 2.7%.

The market is then concerned that the price of gold can stand at $4,500. If this level is maintained, the recent strong pattern of gold is expected to continue; if it falls back below that level, $4,500 may again be turned to upper resistance.