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Gold's retreat meets a bigger long-term tailwind: US debt
Gold’s recent price retreat is being met by a powerful long-term tailwind as the widening U.S. fiscal deficit from “an already critical level” is poised to drive sustained demand for the precious metal, according to Ole S. Hansen, head of Commodity Strategy at Saxo Bank. The strategist noted that investors are increasingly seeking protection against “debt sustainability risks” as America’s balance sheet deteriorates. Equity markets (SP500), (DJI) have slumped while bond yields (US10Y), (US2Y), (US30Y) surged amid mounting inflation concerns following what Hansen described as potentially “the largest ... (full story)