Daily Gold Market Report

Gold bolts higher as bank failure realities sink in
Bank of America strategist sees $2500 as a possibility before year-end

(USAGOLD – 5/1/2023) – Gold bolted higher in early trading as the realities of another significant bank failure and FDIC rescue began to sink in among investors. It is up $13.50 at $2006. Silver is up 69¢ at $25.83. Strong performances in gold and silver in the first half of April instigated by problems in the banking system gave way to profit-taking and choppy market action in the second half. Nevertheless, silver ended the month 4.43% higher. Gold was up 1.31%.

A Bank of America commodities analyst believes that with the strong influences already at work in the gold market, it will not take a significant influx of new buyers to push gold to the $2500 level this year. “Influenced by the recent banking turmoil,” said the strategist in a client note reviewed at Kitco News, “markets are pricing imminent rate cuts. At the same time, core inflation has been sticky and elevated price pressures, for example in shelter, highlight the risk of second-round effects. This confirms our long-held view: central banks have no silver bullet for fighting inflation and this should ultimately bring investors back to the market. The end of the hiking cycle will be critical for the yellow metal.”

Gold and silver price performance
(% price change April 2023)
Chart courtesy of TradingView.com • • • Click to enlarge