Gold prices surged past the $4,500 level after long-term U.S. Treasury yields fell sharply, as the U.S. Treasury Department announced it would increase buybacks of 10- to 30-year bonds to at least $4 billion per operation, up from $2 billion, to boost liquidity in the long-term bond market. This pushed the 30-year yield down nearly 10 basis points to 5.18%, after it had hit its highest level since 2007. Meanwhile, the U.S. dollar weakened to near a three-month low, helping gold climb more than 3%. Analysts at G-Cap assessed that gold's price structure has turned more positive after breaking through key resistance around $4,450 and testing the $4,500 level. In the short term, they are watching support around $4,425 to $4,405, or roughly 68,500 to 68,300 baht for Thai gold. If prices can hold above that zone, there is a chance of a rebound to test $4,500 to $4,520, or about 69,800 to 70,200 baht for Thai gold.
Treasury buyback increase lowers 30Y yield by ~10bp to 5.18%.
Treasury buyback increase lowers long-term yields, so 10Y yield falls.
