Daily Gold Market Report

Gold takes breather after briefly trading at an all-time high yesterday
Another bank goes to the ropes, fuels surge in safe-haven gold demand

(USAGOLD – 5/4/2023) – Gold is taking a breather this morning after briefly trading at an all-time high yesterday of $2082. It is up $2 at $2043.50. Silver is down 3¢ at $25.64. No sooner had Fed chairman Powell declared that the banking system is “sound and resilient” at his press conference yesterday that another bank – this time PacWest Bancorp – went to the ropes. The news instantly fueled another surge in safe-haven gold demand that pushed prices past the old high-water mark before settling in the $2040 range.

Reflecting the level of apprehension in the banking business, former Atlanta Fed President, Dennis Lockhart, told Bloomberg yesterday, “It looks like the markets are moving from one bank to the other and vulnerable deer in the herd are being kicked off. But I would like to believe that Jay Powell has information that suggests that the situation is contained or containable.”

A little Ramirez humor to start your day……

Ramirez cartoon on the game of chicken between the political parties over the debt ceiling
Cartoon courtesy of MichaelPRamirez.com

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