Daily Gold Market Report

Gold up marginally this morning in muted reaction to run on First Republic Bank
Lombard Odier makes an important observation on changing gold market psychology

(USAGOLD – 4/27/2023) – Gold is up marginally this morning as the market reaction to the run on California’s First Republic Bank remains muted. It is up $2 at $2002. Silver is level at $25.11. In an analysis released yesterday, Lombard Odier’s Stephane Mornier makes an important observation about changing gold market psychology we thought worth passing along.

“What do the Singaporean, Turkish, and Chinese central banks have in common with jittery investors?” he asks. “Answer, they’ve been buying gold as a haven and diversifier from fears of a recession, a crisis of confidence in banking, and a weakening US dollar. We see this as an indication that economic factors are taking over from financial speculation as the main driver of demand for gold.” Real demand, it says, is pushing gold towards a new standard. The bank has raised its target price to $2100 by the end of the year.