Ex-Lehman Analyst: Gold Selloff Post-Fed Overlooks Bigger Drivers

Gold prices declined after Fed Chair Kevin Warsh's press conference, widely viewed as hawkish on inflation. Yet strategist Rebecca Ivaldi of FCT Capital Partners maintains the metal's longer-term outlook stays solid, arguing the central bank may prove less restrictive than markets assume. Ivaldi, a former Lehman Brothers analyst, highlighted Warsh's remarks on housing costs and a new data review as signs of uneven policy effects. He also downplayed the dot plot, reducing expectations for further rate hikes. Key supports include Middle East geopolitics and the shift toward non-dollar trade routes, which sustain physical gold demand. Mounting sovereign debt burdens further cap how tight policy can become, historically benefiting hard assets. Ivaldi stressed the real drivers lie beyond short-term rhetoric: “The jawboning works for a few days, but the underlying plumbing tells the real story. The dollar is left less fungible for international trade, not more, the sovereign debt burden remains massive, and the long-term structural case for gold has only grown stronger.”