Gold surges on bullish Treasury news, with spot gold jumping 3%, its highest point in over two and a half months. The yellow metal was responding to a U.S. Treasury announcement that it was doubling the sizes of some debt buyback operations, which knocked down bond yields and the dollar ahead of the release of the Federal Reserve’s July meeting minutes.
Investors are increasingly betting that the Fed will hold interest rates unchanged in September after a series of economic reports showed that inflation hasn’t ramped up as fast as had been anticipate as a result of high oil prices and the Iran war.
The central bank held interest rates steady at 3.5% to 3.75% last month, but dissenters signaled growing support for a rate hike in 2026. The Fed had previously been expected to raise rates next month. Higher rates are typically bearish for gold, making the yellow metal a less attractive asset..
December gold futures fell 1.2% Tuesday to settle at $4,420.60 an ounce on Comex, and the front-month contract lost 0.4% in the first two days of the week. Bullion rose 1.7% in July, its first monthly increase since February, after sliding 12% in June and dropping 0.8% in May. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently up $126.00 (+2.85%) an ounce to $4546.60 and the DG spot price is $4482.20.
Bullion fell the most in almost a month on Tuesday as yields on 30-year Treasuries reached the highest in almost two decades on Tuesday.
The World Gold Council, in a report Wednesday, said that demand conditions are improving in the Indian gold market, with supportive investment demand, though jewelry buying may be price contingent.
Speculation about higher rates has fluctuated along with reports on the Iran war, which has boosted many costs, particularly of oil prices, because of the shutdown of the Strait of Hormuz. The Fed closely watches both inflation and labor market data when setting monetary policy.
Over 63% of the investors tracked by the CME FedWatch Tool now expect rates will remain unchanged at the Fed’s next policy meeting in September, with the rest betting on a 25 basis point increase. The Fed has kept interest rates unchanged this year after three previous rate cuts.
Front-month silver futures slid 3.3% Tuesday to settle at $64.04 an ounce on Comex, and the September contract lost 1.6% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver slid 3.6% in July after declining 21% in June and gaining 2.5% in May. It lost 15% in the first half of 2026 after rising 141% last year. The September contract is currently up $1.738 (+2.71%) an ounce to $65.775 and the DG spot price is $65.63.
Spot palladium dropped 2.5% Tuesday to $1,299.00 an ounce and is down 2.2% so far this week. Palladium added 5.8% last month after dropping 11% in June and losing 12% in May. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is up $32.40 an ounce to $1330.00.
Spot platinum decreased 2.8% Tuesday to $1,730.50 an ounce and lost 1.5% in the first two days of the week. Platinum gained 6.6% last month after tumbling 19% in June and dropping 3.2% in May. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently up $56.10 an ounce to $1788.90.
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