Daily Gold Market Report

Gold pushes cautiously higher as Fed warns of ‘broad credit crunch’
Saxo Bank remains bullish longer term but predicts choppy trading in the short run

(USAGOLD – 5/9/2023) – Gold pushed cautiously higher this morning as tomorrow’s inflation report loomed and investors digested a Fed warning of a “broad credit crunch” brought on by the deposit drain and bank losses. It is up $10 at $2034. Silver is down 4¢ at $25.61. Adding to the general angst, Gallup released a poll this morning showing Jerome Powell as garnering the lowest confidence rating for any Fed chairman on record. Saxo Bank’s Ole Hansen has an overall bullish outlook for the investment metals. He thinks, though, that trading will likely remain choppy over the short run, “especially if inflation concerns return to challenge rate cut expectations.”

“Gold continues to trade within a 200-dollar wide upward trending channel that started back in November,” he says in a market update posted recently, “once the triple bottom was confirmed by the move above $1730. Following the strong March to April runup, triggered by a drop in short-term interest rates and yields in response to the banking crisis, gold went through a period of consolidation before the latest runup to a fresh record high. Key support remains in the $2k area ahead of trendline support, currently at $1982, while the next level of major resistance is not until the $2100 area.”

Gold Chart
(w/ trend channel per Saxo Bank above)
bar chart showing trend channels
Chart courtesy of TradingView.com

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