Gold rises above $4,500 per ounce

Gold remained above $4,500 an ounce in Thursday trading, supported mainly by safe-haven demand

Gold prices reached their highest levels in more than two months during Thursday’s trading, after the US Treasury unexpectedly announced measures to support liquidity in long-term bonds.

The US Dollar Index was unchanged at 98.86 points.

The US Treasury announced that it would double the size of its purchases of long-term bonds and Treasury bills to support liquidity, following heavy selling in the bond market as investors demanded higher yields to offset rising inflation risks linked to the war with Iran, Reuters reported.

Inflation concerns intensified at the Federal Reserve’s meeting last month, with minutes released on Wednesday showing that several policymakers were open to raising interest rates.

Data from the CME FedWatch Tool showed that traders were pricing in a 67% probability that the Fed would leave interest rates unchanged at its next meeting, compared with a 33% probability of a rate hike in September.