Daily Gold Market Report

Gold loses ground after encountering resistance at $2000
Fund, institutional interest signals sustained rally in yellow metal, says FT

(USAGOLD –3/27/2023) – Gold lost ground this morning in what looks to be a technical sell-off after encountering resistance at the $2000 level. It is down $23 at $1957. Silver is down 19¢ at $23.12. Financial Times reports this morning that traders in futures contracts, options, and exchange-traded funds are signaling a sustained gold rally in the weeks ahead that will potentially break all-time highs, and stay there.

“Suki Cooper, precious metals analyst at Standard Chartered, said in the days immediately following the collapse of SVB and Signature there was a massive increase in ‘tactical’ positioning as traders looked for assets considered safe havens in times of crisis,” says FT. Such capital mobilizations on the part of funds and institutions, we will add, have served as a catalyst in the past for higher prices. Similarly, CNBC posted an article calling for all-time highs in the gold price soon. One analyst, CMC Markets Tina Teng, predicted a price of $2500 to $2600 on further declines in the US dollar and bond yields.

composite line-bar chart showing increase in ETF stockpiles
Chart courtesy of GoldChartsRUs.com

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