Gold gains momentum as falling treasury yields lift demand

Gold futures held above $4,500 an ounce in Thursday?s electronic trading after surging more than $100 in the previous session. The rally was fuelled by a sharp retreat in US Treasury yields after the government announced plans to at least double long-dated bond buybacks from $2 billion to $4 billion per operation. Lower yields and a weaker dollar reduced the opportunity cost of holding non-yielding gold, while the dollar index slipped below 98.6, near a three-month low. MCX October gold futures traded largely flat at ₹1,58,224 per 10 grams, while September silver futures gained 1% to ₹2,38,950 per kg.

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