Gold slips after 2-month high

Gold fell on Thursday as investors booked profits after prices climbed to an over two-month peak on a surprise U.S. Treasury liquidity-support announcement for long-duration bonds, which weakened the dollar and sent Treasury yields lower.
Spot gold was down 0.7% at $4,487.63 per ounce by 0604 GMT. Earlier, bullion was at $4,525.79, its highest since June 2, after a more than 4% advance on Wednesday.
U.S. Gold futures were little changed at $4,545.60.
The U.S. Treasury Department said it would ⁠double the size of liquidity support buyback operations for longer-dated notes and bonds. That came after a major bond selloff as investors demanded higher returns on the back of increased inflationary risks stemming from the U.S.-Israeli war on Iran.
Meanwhile, total U.S. debt outstanding topped $40 trillion for the first time, drawing fresh warnings of fiscal crisis.
'Increasing concern about the financial stability of the market with borrowing and debt and the inability to cut spending on the fiscal side is very bullish for gold,” said Edward Meir, ⁠Marex analyst.
Concerns over inflation deepened at the Federal Reserve's meeting last month, with 'several' policymakers ready to raise interest rates, minutes of the session showed on Wednesday.
While gold is typically seen as a hedge against inflation, higher interest rates ⁠tend to diminish non-yielding bullion's appeal.
Among other metals, spot silver held steady at $66.90 per ounce, platinum dropped 1.4% to $1,798.41, and palladium slid 0.5% to $1,325.95. –Reuters