Gold rose modestly on Thursday as dollar-depreciation fears and anticipation of
Fed chair Kevin Warsh’s speech underpinned prices. OANDA senior market analyst
Kelvin Wong said the dollar-weakness narrative combined with U.S. budget-deficit
Concerns provide medium-term support for bullion. The U.S. Treasury’s move to
expand purchases of previously issued long-term bonds intensified
dollar-depreciation worries; gold gained more than 5% last week. Wong said
markets are awaiting Warsh for clearer guidance on how the Fed will respond;
absent specific forward guidance, current market pricing for rate hikes is
likely to remain largely unchanged. Geopolitical risk: the Qatari PM will visit
Tehran to restart diplomatic mediation amid renewed U.S.-Iran mutual
accusations, focused on Washington’s pledge to tighten pressure via sanctions on
Iran’s trading partners.
