Daily Gold Market Report

Gold looks to be taking a breather as it closes out strong week
AcheronInsight’s Yates says gold’s bull market is just getting started

(USAGOLD – 4/14/2023) – Gold looks to be taking a breather this morning as it closes out what has been a strong week for the precious metals. It is down $7 at $2036. Silver is up 13¢ at $26.03. On the week, gold is up 1.72%; silver is up 4.47%. Year to date, gold is up 11.5%; silver is up 8.3%. Gold’s resilience during a period of higher real yields has been “nothing short of remarkable,” says AcheronInsights’ Christopher Yates in an analysis posted yesterday at Seeking Alpha. Now he believes a developing shift in the real yield scenario is about to spill over to the gold market.

“Clearly, real yields look to be in the process of peaking for this cycle,” he says, “meaning we are likely in the early innings of a renewed bull market in precious metals. But, it may be a little too early to suggest they will roll over just yet, particularly if the Fed has one or two surprise hikes left in them as economic and inflation resilience remains for now. However, as growth is likely to slow materially in the second half of the year, there will be a time where nominal yields fall faster than inflation expectations, and thus, real yields roll over hard and fast. One would expect such an environment to be accompanied by a more accommodative Federal Reserve, thus ultimately setting the stage for a fundamentals-backed move higher in precious metals.”

Gold and silver prices
(% gain, year to date)

Chart courtesy of TradingView.com • • • Click to enlarge