Warsh's Hawkish Tone May Soothe Gold Price Jitters

Gold prices are looking to US Treasury rates and Fed Chair Kevin Warsh for hawkish clues. With Treasury rates threatening a breakout to fresh highs, Warsh's task is to represent Fed independence without upsetting President Trump.

Trump has been open about his desire for rate cuts, despite the fact that the Fed only controls short-term rates. Longer-term Treasury rates are driven by market forces and Treasury issuance.

Despite sounding hawkish thus far, Warsh may soften his stance as equities have pulled back and inflation prints have moderated.

This could be a positive sign for gold prices, which have held support at the $4k level. Buyers are making a move with another test of the $4100 level.