Gold Prices Rise Amid Dollar-Debasement Fears Ahead of Fed Chair Speech
Gold prices rose on Thursday as concerns about currency debasement and the US budget deficit continued to support the precious metal. Spot gold was up 0.8% at $4,630.09 per ounce by 0232 GMT, while US gold futures rose 0.7% to $4,685.50.
The dollar-debasement narrative remains supportive of gold in the medium term, according to Kelvin Wong, a senior market analyst at OANDA. Gold prices surged more than 5% last week after the US Treasury's move to expand purchases of older long-dated bonds, prompting dollar-debasement fears.
The market is awaiting the speech of Fed Chair Kevin Warsh at the annual Jackson Hole symposium in Wyoming for greater clarity on how the Fed will navigate the current economic landscape. If he does not provide specific forward-looking monetary policy guidance, current market pricing for rate hikes is likely to remain largely unchanged.