Gold Slips But Soaring Debt 'Supports Price' as Oil Slides, Bond Rates Ease

AI desk brief

Gold slipped to $4,340/oz before recovering to $4,349 after the Fed’s hawkish move pushed the dollar to a 2-month high, but the article argues rising Western debt burdens and easing long-end yields are increasingly supportive for bullion. SPDR GLD holdings rose 0.9% to 1,057t, a 5-month high, while IAU posted a second straight weekly increase; Ole Hansen says gold is now trading more on fiscal/debt risk than the traditional real-yield relationship.

China also provided support: Shanghai Gold Exchange gold traded at an almost $16/oz premium to London last week, though the premium eased to $6 ahead of the Trump-Xi summit. Silver rose to $67.05/oz intraday, with platinum and palladium also firmer as Brent fell and bond rates eased.