KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives are expected to breach US$4,600 per troy ounce this week.
Quintex Intel global strategist Stephen Innes said gold should remain supported as investors seek protection against growing concerns over US national debt and the credibility of its fiscal policies after media reported US debt had surpassed US$40 trillion for the first time.
“Bullion is becoming the clearest release valve for concerns over excessive government debt and the risk that policymakers eventually respond through lower real yields, financial repression or renewed balance-sheet support.
“In that environment, gold remains one of the best hedges against a broader erosion of fiscal credibility across developed markets,” he told Bernama.
This week, market players are also eyeing fresh leads from the US personal consumption expenditures inflation report, which will be released on Aug 26.
