- Gold September futures rose 1.07% to Rs 1,58,252 per 10 grams on MCX by 8:56 pm
- Silver September futures increased 3.23% to Rs 2,44,428 per kg on MCX by 8:56 pm
- US Treasury Secretary Bessent said buybacks could exceed $4 billion per Treasury issue
Gold and silver prices surged during the trading session on Thursday, August 20 as US Treasury Secretary Scott Bessent said buybacks of Treasury securities could be increased and positive US jobless claims data.
On MCX, gold September futures contract rose 1.07% or Rs 1,681 to Rs 1,58,252 per 10 grams, while silver September futures climbed 3.23% or Rs 7,641 to Rs 2,44,428 per kg by 8:56 pm. Spot gold advanced 0.07% or $3.36 to $4,526.39 an ounce and silver jumped 2.87% or $1.9 to $68.9.
The latest rally in precious metals come after Bessent said buybacks of Treasury securities could be more than $4 billion per issue. “It could be more than the $4 billion per issue,” Bessent told CNBC on Thursday, pushing 30-year Treasuries lower.
Prior to Bessent's statement, precious metals traded mixed as MCX gold October futures contract dropped 0.15% to Rs 1,56,331 per 10 grams, while silver September futures rose 0.41% to Rs 2,37,750 per kg by 6:16 pm.
On Wednesday, gold climbed to its the highest level since early June after US government bond yields dropped as the Treasury announced surprise liquidity injection, a tailwind for the precious metal.
Wide fiscal deficits remain a top concern for investors, along with inflation worries amid the war in Iran and supply pressure from a surge in borrowing in the artificial intelligence industry. The climb in US Treasury yields has increased the cost of servicing the national debt, which hit a record $40 trillion this week.
Meanwhile, applications for US jobless claims benefits remained low last week, remaining near historically low levels and indicating few layoffs across the labour market. This is expected reduce the possibility of rate hike by US Federal Reserve, a headwind for non-yielding bullion.
Initial claims declined by 6,000 to 206,000 for the week ended on August 15, according to data released by US Labor Department on Thursday.
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