Gold prices slipped Thursday, pressured by a firmer dollar, as investors awaited potential signals about interest rates from an annual Federal Reserve-hosted global central bank gathering in Jackson Hole.
The haven metal remained underpinned, however, after threats earlier this week by U.S. President Donald Trump to shut down the federal government unless his administration got funding for a border wall with Mexico.
…“We believe recent [Fed] rate hikes have already begun to crimp a debt-addled and growth-starved U.S. economy. In the context of outstanding debt levels, the Fed is already too tight, and we suspect Fed ‘tightening’ for this cycle has largely concluded. If we are correct in our significantly nonconsensus analysis, many financial assets are likely to be repriced aggressively in coming months, to gold’s tangible benefit,” said Trey Reik, senior portfolio manager with Sprott Asset Management, in a commentary.