Daily Gold Market Report

Gold drifts sideways ahead of Wednesday’s inflation report
increased number of countries repatriate gold from London vaults 

(USAGOLD – 7/10/2023) – Gold is drifting sideways ahead of Wednesday’s inflation report with a significant drop in the headline number from 4% to 3.1% the consensus expectation. It is down $1 at $1926.50. Silver is down 3¢ at $23.13. An Invesco survey of central banks and sovereign wealth funds finds that an increased number of countries are repatriating gold from London vaults and other storage facilities, according to a Reuters report posted yesterday.

Invesco found that two developments over the past year triggered the shift – sanctions on Russia’s gold and currency reserves and a belief that “inflation in the coming decade will be higher than in the last.” Of the 85 sovereign wealth funds and 57 central banks surveyed, 68% said they were keeping their reserves at home compared to 50% in 2020.” Gold repatriation removes bullion from the leasing pool, which has acted as a drag on the gold price in the past. “We did have it held in London,” said one central banker, “but now we’ve transferred it back to [our] own country to hold as a safe haven asset and to keep it safe.”