Gold retreats as investors take profits after reaching highest level in over two months

Gold prices fell on Thursday as investors moved to take profits, following a rise to their highest levels in over two months after an unexpected announcement by the U.S. Department of the Treasury regarding support for liquidity in long-term bonds, which led to a decline in the dollar and lower Treasury yields.

By 03:31 GMT, spot gold prices fell 0.6 percent to $4,495.69 per ounce, after earlier recording $4,525.79, their highest level since June 2, following a jump of more than 4 percent in the previous session.

In contrast, U.S. gold futures rose 0.2 percent to $4,553.30 per ounce.

The U.S. Department of the Treasury announced on Wednesday that it would double the volume of repurchase operations to support liquidity in the long-term bond market, following a wave of heavy bond selling as investors demanded higher yields amid growing inflation risks stemming from the U.S.-Israeli war on Iran.

Ilya Spivak, head of global macroeconomics at Testi Life, said gold experienced a strong upward surge, expecting markets to enter a period of consolidation after this significant move.

He added that gold had broken above the $4,400–$4,500 price range, noting that stability above this range could support continued upward momentum.

As for other precious metals, spot silver rose 0.2 percent to $67.07 per ounce, while platinum fell 1.3 percent to $1,802.29, and palladium declined 0.2 percent to $1,328.06.