Gold Prices Soar Amid Dollar Debasement Fears
Gold prices hit their highest in over three months on Tuesday, as investors continued to buy the precious metal amid concerns about US dollar debasement. The spot price of gold rose 0.4% to $4,668.19 per ounce, while US gold futures increased by 0.6% to $4,724.50.
The recent announcement from the US Treasury Department that it would double the size of liquidity support buyback operations for longer-dated notes and bonds has fueled concerns about currency debasement, which is supporting gold prices. This fear of debasement should continue to drive demand for gold in the coming weeks, according to TD Securities.
Fed Chairman Kevin Warsh's upcoming speech at the annual Jackson Hole conference will be closely watched by traders and analysts as they seek guidance on the recent jump in bond yields and reassurance that he is independent from the Trump administration. The US Personal Consumption Expenditures report, a key inflation gauge, is also due out this week.