Daily Gold Market Report

Gold turns to the downside to start the week
Van Eck says ‘tail risks’ are driving the gold bull market that began in 2015

(USAGOLD – 6/19/2023) – Gold turned to the downside to start the week as markets pondered just what it was the Fed was trying to convey last week. It is down $8 at $1952. Silver is down 25¢ at $24.03. The Wall Street Journal’s Nick Timaraos challenged the Fed’s apparent indecisiveness with a straightforward question asked at the post-meeting press conference: “Chair Powell, what’s the value in pausing and signaling future hikes versus just hiking now?… Why not just rip off the Band-Aid and raise rates today?”

“Gold,” says Van Eck, the New York-based fund manager, “has been in a bull market for over seven years, rising 87% from its secular low in December 2015. However, unlike the steady and predictable bull market of the 2000s, this bull moves up, down and sideways in fits and turns that makes price targeting next to impossible. The main drivers of past gold bull markets are extraordinary tail risks and a falling dollar. We are living in an age of tail risks as the world goes through sickness, war, social disorder and financial stress that most people thought were relegated to the past. The level of tail risks today are at least as significant as past bull markets.”

Gold’s bull market trend since 2015
(After Van Eck’s chart published at the link below)
Chart courtesy of TradingView.com and Van Eck • • • Click to enlarge