Gold drifts marginally higher as it looks to close out a dismal February
Yellow metal gives back $140 of the $340 price gain since last November
(USAGOLD – 2/27-2023) – Gold drifted marginally higher in directionless trade this morning as it looks to close out what’s been a dismal month. It is up $2 at $1815. Silver is down 5¢ at $20.80. Saxo Bank’s Ole Hansen sees renewed dollar strength and a weaker bond market as the two primary factors providing headwinds for gold. The yellow metal, he reminds us by way of perspective, gained $340 in the rally that began last November, and has now given back $140.
“For now,” he says in an advisory posted Friday, “gold is likely to take much of its directional inspiration from the dollar and, until we see another rollover, gold will continue to look for support. Demand for gold remains uneven, but in the short term we anticipate that central bank demand will more than offset a continued lack of appetite from investors in the ETF market where total holdings continue to be reduced, down by almost 50 tons since early November when gold began its strong run-up in prices.”
Gold and silver prices
(One month)
Chart courtesy of TradingView.com • • • Click to enlarge
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“Markets got ahead of themselves in terms of pricing in Fed cuts, Investors were betting that the Fed was going to get inflation down successfully and quickly. I think this process is going to take longer than people thought.” – Idanna Appio, First Eagle Investment Management, via Financial Times
