Daily Gold Market Report

Gold drifts sideways after yesterday’s Fed-inspired cross-markets rout
‘Gold is often highly sought after in periods of economic and financial uncertainty’

(USAGOLD – 3-8-2023) – Gold drifted sideways this morning as it attempted to regain its footing after yesterday’s Fed-inspired, cross-markets rout. It is level at $1816. Silver is up 2¢ at $20.16. Markets have been in a quandary as to how the Fed would respond to the recent run of robust economic data. Fed chairman Powell put an end to the speculation yesterday, promising an aggressive policy to fight inflation. In an analysis released this morning, Wisdom Tree, the Dublin-based investment firm, warns of headwinds for gold but reminds us that those same headwinds create the need for a safe haven.

“Despite some of the near-term setbacks for gold,” it says, “we should remember that the bond yield curve is the most inverted since the early 1980s. Gold has historically performed well during bear market flattening inversions. Historically, yield curve inversions are followed by recession (albeit with long lags). Markets are fearing that central banks could easily overdo the tightening in their inflation fight. Gold is often highly sought after in periods of economic and financial uncertainty as the metal presents strong defensive hedge qualities.”

Gold average annual price
(1971-2022)

bar chart showing the average annual price of gold 1971 to November 2022