Lotus gold price in the world market

Gold rose to its highest price in more than two months after the US Treasury Department announced an increase in liquidity support for long-term bonds. However, on Thursday (August 20), the price of the precious metal fell slightly due to profit taking.

Spot gold fell 0.7 percent to $4,488.19 an ounce on Thursday after rising more than 4 percent on Wednesday, Reuters reported. Earlier, the price rose to 4 thousand 525.79 dollars, which is the highest since June 2.

Meanwhile, the price of the US gold futures contract was slightly changed at 4 thousand 546.30 dollars per ounce.

The US Treasury Department said the amount of bond repurchases will be doubled under the liquidity support program for long-term notes and bonds. Earlier, there was a huge selling pressure in the US bond market. Bonds are under pressure as investors demand higher profits on fears that the US-Israeli war over Iran could raise inflation risks.

Meanwhile, the US dollar is hovering near a three-month low. The weakness of the dollar usually makes gold denominated in dollars relatively cheaper to foreign buyers.

TestyLive's head of global macroeconomics, Ilya Spivak, said, "There's clearly been a big uptick in the gold market. After such a big price increase, it is normal for some price adjustment in the market.

He also said, 'The price range of 4 thousand 400 to 4 thousand 500 dollars has been crossed. If the price can hold above this range, then the upward momentum is likely to continue.

For the first time, the total government debt of the United States exceeded 40 trillion dollars. This has created new concerns about the country's financial crisis.

Marex analyst Edward Meier said, 'Concerns about the financial stability of the market are growing due to the inability to reduce debt and government borrowing and government spending. This is very positive for gold.”

Meanwhile, the minutes of the Federal Reserve's meeting last month showed that concerns about inflation have increased. Some Fed policymakers were also prepared to raise interest rates, according to minutes released Wednesday.

According to data from the CME FedWatch tool, markets currently see a 69 percent chance of the Federal Reserve keeping interest rates unchanged in September and a 31 percent chance of a rate hike. Gold is generally considered a hedge against inflation. But rising interest rates reduce the attractiveness of gold, which does not pay any interest or income.

Meanwhile, among other precious metals today, spot silver fell 0.5 percent to $66.60 an ounce. Platinum fell 1.6 percent to $1,794.91 and palladium fell 0.5 percent to $1,325.94.