Concerns Over Dollar Depreciation Support Gold Prices, Market Focuses on Walsh's Speech

Reported by Golden Finance, August 27: Gold prices edged higher on Thursday as concerns over currency depreciation persisted, while market attention shifted to the highly anticipated speech by Federal Reserve Chairman Walsh later this week. Kelvin Wong, Senior Market Analyst at OANDA, stated that the narrative of dollar depreciation, coupled with worries about the U.S. budget deficit, continues to provide medium-term support for gold. The U.S. Treasury previously announced an expansion in the purchase scale of earlier-issued long-term bonds, sparking concerns over dollar depreciation, which led gold prices to rise by over 5% last week. Wong added: "The market is awaiting Walsh's speech for clearer insights into how the Federal Reserve plans to address the current economic situation. If he does not provide specific forward-looking monetary policy guidance, the current market pricing for rate hikes is likely to remain largely unchanged." On the geopolitical front, Qatar's Prime Minister is set to visit Tehran to resume diplomatic mediation. Previously, the U.S. and Iran exchanged accusations, with the dispute centered on Washington's pledge to increase economic pressure on Tehran by sanctioning Iran's trade partners. (Jin10)