Gold tracks higher in continuation of yesterday’s upside reversal
Once again bounces off support at just below $1700
(USAGOLD – 9/8/2022) – Gold is tracking higher this morning in a continuation of yesterday’s upside reversal during US trading hours. It is up $8 at $1729. Silver is up 17¢ at $18.76. Both metals revisited chart support levels before reversing – just below $1700 for gold, and just below $18 for silver. Energy pricing has calmed this week and taken the pressure off global bond markets – at least for now – though the yield on the 10-year Treasuries benchmark is still well above the 3% level.
Global gold ETF stockpiles, the World Gold Council reports, declined for the fourth consecutive month in line with the price performance. UK-based analyst Charlie Morris isn’t all that concerned about the decline of interest among funds. “Don’t worry,” he advises in the latest edition of Atlas Pulse, “they’re collectively behind the curve, and you can guarantee they’ll be back.” Meanwhile, central banks continue to acquire the metal with over 300 tonnes purchased thus far in 2022. “As the bond yield continues to rise,” writes Morris, “the downward pressure on US equities bites as they become extended. The move since March 2020 is one for the record books. The risk facing gold is marginal compared to the risk facing US equities, and it is hard to see a scenario where gold doesn’t win.”