Lombard Odier/Stephane Monier/4-24-2023

“What do the Singaporean, Turkish, and Chinese central banks have in common with jittery investors? 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.”

USAGOLD note: Mornier makes an important observation about changing gold market psychology we thought worth passing along. If real, or physical, demand is going to play a greater role in the pricing of gold – if indeed we are at the cusp of a new standard in the marketplace – then we will be that much closer to the dog regaining control of the tail.