Daily Gold Market Report

Gold turns sharply higher on unemployment report, sudden bank collapse
‘Gold doesn’t need a crisis to move higher, but it definitely loves a crisis.’

(USAGOLD – 3/10/2023) – Gold turned sharply to the upside after the Labor Department reported higher-than-expected unemployment. It is up $20 at $1852. Silver is up 50¢ at $20.64. The metals are also getting a boost from the sudden collapse of one California bank (SVB) and the potential collapse of another (SVB Financial Group). The banks’ problems were brought on, says Bloomberg, by holdings of “low-interest bonds that can’t be sold in a hurry without losses. So if too many customers tap their deposits at once, it risks a vicious cycle.” (In other words, a classic bank run.) “The faster you raise interest rates,” says Capitalight Research’s Chantelle Schieven in a recent Kitco News interview, “the faster something is going to give, that something is going to break. Gold doesn’t need a crisis to move higher, but it definitely loves a crisis.”

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