No DMR today (4/5/2022)
Below is yesterday’s report.

Gold turns to the upside to start the week
London-based Shard Capital says ‘it’s time to buckle up, the ride might get rough’

(USAGOLD – 4/4/2022) – Gold turned to the upside to start the week as the violence in Ukraine escalated, and Germany’s defense minister suggested the European Union must consider banning the import of Russian natural gas. It is up $7.50 at $1933. Silver is up 10¢ at $24.77. It is difficult to ignore how quickly recession has moved to the forefront of investor concerns. In a report released overnight, London-based Shard Capital took those concerns to a whole new level.

“The consequences of all of this is a snowballing effect, of higher prices resulting in falling demand, weaker sentiment, driving demand further down,” reads the report. “This negative cycle, alongside contractionary central bank policy, which will further exacerbate falling output. The consequence could well be a very deep recession. For markets such as the UK and Europe one can add weakening currency effects, which will further stoke rising prices as import costs goes up, and you are set in a spiralling downturn ultimately ending in a depression that could last not months, but years. Clearly capital markets are not priced for this outcome. Neither does central banks have the firepower to bail us out. It’s time to buckle up, the ride might get rough!!” According to the report, the firm holds an overweight position in gold.

Gold Price 
US dollar, Japanese yen, British pound, Euro, Chinese yuan
(%, year to date)

Chart courtesy of TradingView.com • • • Click to enlarge

Chart note: Safe haven investors have pushed gold higher in all the major currencies since the start of the year. It is up 7% in U.S. dollars; 7.16% in Chinese yuan; 9.82% in euro; 9.94% in British pounds and 13.73% in Japanese yen.