Gold Prices Continue to Rise as Attention Turns to Fed Chair Warsh
Concerns over the U.S. budget deficit and expectations of a weaker dollar have pushed gold higher. Investors are focusing on the Jackson Hole symposium.
As gold prices rose on Thursday amid concerns over the U.S. budget deficit and expectations that the dollar will lose value, attention has turned to the speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
Latest Status on Gold Prices
Spot gold climbed 0.8% to $4,630.09 per ounce. U.S. gold futures also increased by 0.7% to reach $4,685.50.
Market Analysts' Evaluations
OANDA senior market analyst Kelvin Wong emphasized that expectations of a depreciation in the dollar and concerns regarding the U.S. budget deficit continue to support gold in the medium term.
Bond Steps and Inflation Data
The U.S. Treasury's announcement that it would increase long-term bond purchases had driven gold up by more than 5% last week. Data on Wednesday showed that annual inflation in July remained above the Fed's 2% target.
Fed Expectations and Other Metals
According to CME FedWatch data, the probability of an interest rate hike in September is priced at 36.5%, while for December it is priced at 72.7%. Among other metals, silver gained 1.7%, platinum 1.1%, and palladium 0.5%.