Gold hits $4,488 despite profit-booking after rally

August 20, 2026 (MLN):  Gold retreated on Thursday as traders locked in gains after bullion touched a fresh two-month high in the previous session, with the rally driven by an unexpected U.S. Treasury measure aimed at easing pressure in the long-dated bond market, a move that dragged the dollar lower and eased Treasury yields.

However, currently, spot gold is up 3.2% to $4,488.55 an ounce as of [10:00 am] PST, according to data reported by Mettis Global.

Behind the move was Wednesday's announcement from the U.S. Treasury that it would expand liquidity-support buybacks of longer-maturity notes and bonds, doubling their scale, according to Reuters.

The step followed heavy selling in bond markets, with investors demanding richer yields amid mounting inflation concerns tied to the ongoing U.S.-Israeli conflict with Iran.

The greenback, meanwhile, remained pinned near three-month lows.

Separately, America's total outstanding debt breached the $40 trillion mark for the first time, reviving concerns among analysts about the sustainability of U.S. public finances.

Inflation worries also surfaced within the Fed's own ranks: minutes from last month's policy meeting, released Wednesday, showed several officials leaning toward a rate increase.

Futures markets currently assign a 67% probability to the Fed keeping rates unchanged in September, versus a 33% likelihood of a hike, per the CME FedWatch Tool a dynamic that matters for gold, since rising rates typically dull the appeal of non-yielding assets even though the metal is often bought as an inflation hedge.

Elsewhere in metals, silver edged up 0.2% to $67.07 an ounce, platinum fell 1.3% to $1,802.29, and palladium slipped 0.2% to $1,328.06.

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