Gold futures finished higher on Tuesday, with the precious metal finding support due to a retreat in U.S. Treasury yields, said Stephen Innes, managing partner at SPI Asset Management. Deal or no deal, a U.S. debt rating downgrade is a huge possibility, he said, and “we could rerun the paradoxical ‘buy the debt of the defaulter dynamic’,” he said. In that case, there may be a rally in rates, as “I would expect the market to price in a more dovish Fed on a ratings agency downgrade,” said Innes. “This is gold positive.” Gold for August delivery GCQ23 climbed $14, or 0.7%, to settle at $1,977.10 an ounce on Comex.
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