Spot Gold Jumps 15% Since August Toward $4,800 as U.S. Deficit Fears Deepen
Updated
Updated · CNBC · Aug 26
Spot Gold Jumps 15% Since August Toward $4,800 as U.S. Deficit Fears Deepen
3 articles · Updated · CNBC · Aug 26
Summary
$4,656 spot gold hovered in early Asian trade after climbing nearly 15% since August, putting it on track for its biggest monthly gain since September 1999.
U.S. fiscal-deficit worries and rising borrowing costs have revived Wall Street's 'debasement trade,' with investors buying gold as a hedge against dollar and Treasury devaluation.
$4.8 trillion in U.S. debt issuance last year has intensified doubts that Treasury Secretary Bessent can keep yields down through market intervention, after Stanley Druckenmiller publicly questioned the strategy.
Jackson Hole is now the next test for markets, with Fed Chair Warsh expected to debut this week and potentially signal a hawkish stance as long-term yields keep rising.
CME FedWatch shows slightly better than 50% odds of an October rate hike, a backdrop that could keep pressure on bonds while sustaining demand for gold.