Gold Prices Rise Amid Currency Debasement Fears and Rate Hike Uncertainty
Gold prices continued their upward trend on Thursday, rising 0.8% to $4,630.09 per ounce, as currency debasement fears persisted. The dollar-debasement narrative remains supportive of gold in the medium term, according to Kelvin Wong, a senior market analyst at OANDA.
Markets are closely watching the remarks of U.S. Federal Reserve Chair Kevin Warsh at the annual Jackson Hole symposium, which may provide further direction on monetary policy. If Warsh's speech does not offer specific forward-looking guidance, current market pricing for rate hikes is likely to remain unchanged, Wong said.
The market has assigned a 36.5% probability to a September U.S. rate hike and a 72.7% chance by December, according to the CME FedWatch Tool. The pause in the decline of annual U.S. inflation above the Fed's 2% target for the 65th straight month adds to the central bank's debate over whether interest rates should be lifted or held steady.