Daily Gold Market Report

Gold tracks higher attempting to establish technical support above the $1900 mark
Societe General says gold could appreciate by end of the year in ‘lumpy moves’

(USAGOLD – 6/26/2023) – Gold is tracking higher as it attempts to establish technical support above the $1900 mark. It is up $11 at $1934. Silver is up 37¢ at $22.88. Societe General has a positive prognosis for the gold market as outlined in its recently published Commodities Outlook concluding that gold’s rally is “not over yet.”

“…[With] the low-hanging fruit in the inflation fight already picked,” it says, “our strategists’ anticipation is that the gold market will have to price in higher forward CPI projections. As a result, gold could appreciate by the end of the year in lumpy moves as the market adjusts its forward inflation expectations with the macro newsflow. As an additional driver, in a scenario of moderating US rates, USD might weaken, which could buoy gold. Our strategists see all of this unfolding against the broader, intact theme of central banks diversifying their holdings away from fiat currencies, notably the USD, into gold.”