Gold Prices Soar on US Dollar Credibility Concerns

CITIC Securities has reported that the US Treasury's intervention in long-end US Treasuries this week has sparked strong market demand for gold.

The Federal Reserve's meeting minutes were hawkish, but the Treasury's efforts to curb the rise in long-end interest rates shifted market focus toward concerns about the credibility of the US dollar and the sustainability of US fiscal policy.

Consequently, gold prices surged strongly, with gold stocks following suit. Meanwhile, the LME copper squeeze concluded this week as warehouse deliveries proceeded, but the persistence of the backwardation structure on the LME highlights tight inventory conditions, leaving copper prices with momentum to challenge historical highs.