-The Federal Reserve won't be able to maintain its aggressive monetary policies for much longer because of the nation's growing debt burden, which will continue to support gold prices at record levels, according to one market analyst.
"The global economy, because of growing debt burdens, can't afford these higher rates right now," she said. "Because of rising interest rates, the servicing costs for all this debt is just going up. At some point, all this debt will become distressed and that is where gold comes in." Although the U.S. economy has been fairly resilient in the current environment, Schieven said that a lot of the data the central bank is monitoring is backward looking.
While a recession generally isn't favorable for gold, Schieven said that the Federal Reserve's response to support the economy should prove to be.