Gold Rally Hits Setback, Yet Analysts See 40 Trillion Reasons for Optimism

Gold faced a pullback after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium, stressing inflation control over labor concerns. Spot prices fell to $4,473.80 an ounce, down 2.74% daily and nearly 3% weekly, after approaching $4,700. Analysts cite U.S. government debt above $40 trillion as a core long-term bullish driver for gold. David Morrison of Trade Nation observed the market is overbought yet sees upside potential, viewing the dip as a chance to shake out weak hands and rebuild momentum. Despite odds of a September rate hike rising to 55%, experts including Neil Welsh maintain that broader fiscal risks will support the rally. They suggest patience and treating corrections as buying opportunities.