Gold Prices Rise as Currency Debasement Fears Linger

Gold prices rose on Thursday as concerns about currency debasement and US budget deficit lingered. The precious metal was up 0.8% at $4,630.09 per ounce by 0232 GMT, with US gold futures rising 0.7% to $4,685.50.

Market analysts say the dollar-debasement narrative remains supportive of gold in the medium term. Kelvin Wong, a senior market analyst at OANDA, said that the recent expansion of US Treasury purchases of older long-dated bonds prompted dollar-debasement fears, leading to a 5% rise in gold prices last week.

Markets are closely watching Federal Reserve Chair Kevin Warsh's remarks at the annual Jackson Hole symposium in Wyoming for further direction. If he doesn't provide specific forward-looking monetary policy guidance, current market pricing for rate hikes is likely to remain largely unchanged, Wong said.