Daily Gold Market Report

Gold turns higher on shifting rate sentiment
Poszar: Gold back as a ‘theme’ as global ‘monetary divorce’ from the dollar gathers pace

(USAGOLD – 7/18/2023) – Gold turned higher this morning on continued dollar weakness and a general feeling that the Fed’s tightening campaign is nearing an end. It is up $9 at $1966. Silver is up 7¢ at $24.95. Treasury Secretary Yellen added to the shifting sentiment by saying yesterday that a cooling labor market was imposing disinflationary pressures on the economy.

Zoltan Poszar, the widely-followed ex-Credit Suisse analyst, told Bloomberg over the weekend that the global financial system is now engaged in a “monetary divorce” from the US dollar. “You know, these topics: de-dollarization, the re-monetization of gold, using central bank digital currencies to build out, to knit out a de novo financial system, you know, the petroyuan and the renminbi invoicing of commodities and traded goods going forward,” he explains.

And how will gold fare under such circumstances? “Gold,” he says, “is definitely something that’s coming back as a theme… we are seeing this more and more in the data that especially the countries that are not geopolitically aligned to the US are shunning Treasuries and shunning the dollar and they are buying gold instead.”