Daily Gold Market Report

Gold gains ground as debt drama moves to the halls of Congress
Bridgewater sees subtle shift as central banks, investors turn to gold as a store of value

(USAGOLD – 5/30/2023) – Gold gained ground this morning as the still unresolved debt drama moved to the halls of Congress. It is up $16 at $1962. Silver is up 7¢ at $25.32. After all is said and done, Bloomberg points out in its morning advisory, the deal barely dents the $20 trillion in combined budget deficits projected over the next decade.

Bridgewater Associates, the world’s largest hedge fund, writes Financial Times’ Gillion Tett, believes that “the past 15 years of quantitative easing and recent high inflation have left central banks and retail investors alike reaching for gold as a store of value.” Moreover, investors have subtly shifted from “evaluating gold as an alternative to other dollar-denominated savings to increasingly evaluating gold as an alternative to the dollar.” She concludes that “gold is now a good barometer not just of global instability, but of US dysfunction too” and that America’s economic problems will not end with a debt ceiling deal. [Source: Financial Times]

Cartoon courtesy of MichaelPRamireiz.com