Gold Prices Rise Amid Dollar-Debasement Fears and US Budget Concerns
Gold prices rose on Thursday as investors held onto dollar-debasement fears and concerns about the US budget deficit. The precious metal gained 0.8% to $4,630.09 per ounce at 0232 GMT.
Kelvin Wong, a senior market analyst at OANDA, said that the dollar-debasement narrative remains supportive of gold in the medium term. This follows last week's surge in prices after the US Treasury expanded purchases of older long-dated bonds, prompting fears of currency debasement.
Markets are eagerly awaiting Fed Chair Kevin Warsh's remarks at the Jackson Hole symposium in Wyoming, which could provide further direction on monetary policy. The CME FedWatch Tool shows a 36.5% probability of a September US rate hike and a 72.7% chance by December.
Gold's appeal as a hedge against geopolitical and economic risks remains strong, but higher interest rates can diminish its appeal since it pays no interest. Spot silver gained 1.7% to $69.28, platinum rose 1.1% to $1,848.57, and palladium firmed 0.5% to $1,334.49.