Gold Reaches $4,677 as U.S. Expands Long-Term Bond Buyback

The yield on U.S. long-term Treasury bonds remains high, drawing attention to gold as a safe-haven asset. The U.S. Treasury announced it will expand the buyback of nominal bonds maturing in 10-20 years and 20-30 years from $2 billion to at least $4 billion. The implementation period is from September 9 to November 4. This measure aims to support liquidity in the long nominal bond segment and is not related to gold purchases or monetary easing. The rise in long-term interest rates increases the interest burden on the U.S. government and may raise concerns about the trust in dollar assets. In the gold market, this is linked to an increase in demand for safe-haven assets. On the 24th, spot gold rose to $4,677.14, marking the highest level since May 14. According to the second-quarter gold demand report, central bank net purchases reached 289 tons, and gold ETFs saw inflows of 46.7 tons and $6.4 billion last week. The Treasury's actions are interpreted as a technical response to support liquidity, and Korean investors are paying attention to interest rates and dollar flows. The next refinancing announcement is scheduled for November 4.

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