Daily Gold Market Report

Gold takes positive turn as Japan signals reversal of dovish monetary policy

‘The desire for gold is the most universal and deeply rooted commercial instinct of the human race.’
Gerald Loeb, Wall Street trader

(USAGOLD – 7/28/2023) – Gold took a positive turn this morning as Japan signaled it might begin reversing its dovish monetary policy – a move that surprised markets and sent the Japanese yen sharply higher in overseas markets. Gold is up $10 at $1959. Silver is up 19¢ at $29.39. “If inflation has indeed returned to Japan, which we believe it has,” says State Street’s Michael Metcalf, “the BoJ will find itself needing to raise rates just as hopes for interest rate cuts rise elsewhere. This should be a medium-term positive for the JPY [Japanese yen], which remains deeply undervalued.”

We came across this passage from a Dominic Frisby essay earlier this week and thought it worth passing along:

“The experience of beauty, whether derived from nature, art, music or even mathematics, correlates with activity in the emotional brain, the medial orbitofrontal cortex. Beauty has long been associated by philosophers with truth and purity – also qualities commonly associated with gold. Our instinct for gold and the emotions it inspires from beauty to desire are basic. There has not been a culture in history that did not appreciate the value of gold. It is a primal instinct. ‘The desire for gold,’ said Wall Street trader Gerald Loeb, ‘is the most universal and deeply rooted commercial instinct of the human race.’” [Source: MoneyWeek]