Daily Gold Market Report

Gold loses momentum as traders test the downside
Felder: ‘Gold may be on the cusp of another major bull market.’

(USAGOLD – 4/25/2023) – Gold turned lower this morning as momentum faltered just below the psychologically important $2000 mark and traders tested the downside. It is down $11 at $1980. Silver is down 59¢ at $24.62. Jesse Felder, the veteran market analyst and former hedge fund manager, thinks gold may be on the cusp of another major bull market driven by the federal government’s rapidly deteriorating fiscal situation.

“[I]f history is any guide, the best protection against a deteriorating fiscal situation (mathematically guaranteed by rapidly growing social security and medicare spending) is gold,” he writes in a recently posted analysis. “The last time the deficit reversed from a narrowing trend and began a major widening trend, back in the early-2000’s, it coincided with a major top in the dollar index which evolved into a major bear market for the greenback that lasted roughly a decade. This was one of the primary catalysts for a major bull market in the price of gold which rose from a low of $250 in 2001 to a high of nearly $2,000 a decade later.”

Gold and the US federal debt
(1971 to present)

Chart courtesy of Trading View.com • • • Click to enlarge