Monthly Archives: August 2023

Daily Gold Market Report

Retirement

USAGOLD’s founder and former chief executive officer, Michael J. Kosares will be retiring in full over the next few weeks. As such, the Recommended Headline News and Opinion page, as well as the monthly Top Ten Headlines email service will both go on a brief hiatus.  We will also be using this time to retool our Daily Market Report service, as we work to build a cohesive and consistent cross-platform presentation of all of USAGOLD’s original market commentary, analysis and opinion-based content.  Our plan is to re-introduce all these services simultaneously in mid to late September.

––––––––––––––––––––––––––––––––

Gold grinds lower on China concerns and the prospect of higher rates
Saxo Bank sees the carrying cost as keeping a liked on the metal’s short-term prospects

(USAGOLD – 8/15/2023) – Gold continued to grind lower this morning as concerns about China’s economy and further rate increases pressed on short-term prospects. It is down $4 at $1905.50. Silver is down 17¢ at $22.50. Saxo Bank’s Ole Hansen sees the high cost of carry as one of the chief headwinds keeping a lid on the metals’ short-term prospects. “It’s clear,” he says in an analysis posted late last week, “that the bulk of the increase from next to nothing back in 2021 to the current 5.8% has been driven by the rising funding cost of holding a position in gold.”

“Looking at correlations to other markets,” he adds, “the biggest input currently is coming from movements in the dollar, and the greenback has seen broad strength this past week supported by higher bond yields adding downside pressure to the Japanese yen while other Asian currencies have struggled amid the aforementioned weakness in Chinese economic data. Apart from dollar strength hurting sentiment, we continue to see asset managers and long-term investors reducing their exposure to gold through ETFs. Since the May peak that followed the March banking crisis, total holdings in ETFs have slumped by 109 tons to 2821 tons and the lowest since January 2000.”

Share
Posted in Daily Market Report, dailyquotes |

Daily Gold Market Report

Gold level this morning as the summer grind continues
Market Herald’s Robertson sees gold in a win-win situation 

(USAGOLD – 8/14/2023) – Gold is level this morning at $1916.50 in subdued, featureless trading. Silver is off 2¢ at $22.76. The slow summer grind continues. It has been a perplexing time for gold, with many of the verities that have propelled the price in the past stood on their head, but Market Herald’s Coreen Robertson looks at the probabilities ahead and sees gold in a win-win situation.

“It maybe doesn’t like it, maybe isn’t the most exciting, but [gold] does well in that unicorn scenario of growth with low inflation,” she says in an interview recently posted at Stockhouse. “The other option is that we get a recession right now. So the two sides of the spectrum for a while, we’ll just continue down the middle, which is where we’ve been forever, not knowing which way we’re going to go. But when we do eventually choose a path, it’s either going to be the unicorn or it’s going to be the recession. And as we discussed before, gold very reliably does well in a recession. So I kind of think that no matter what happens, gold is well supported either as part of a broad metals bull market or because investors buy it in a recession.”

Average Gold Price
(1971-2022)
bar chart showing the average annual price of gold 1971 to November 2022
Chart by USAGOLD • • • Data source: Macrotrends.net

Share
Posted in Daily Market Report, dailyquotes |

Daily Gold Market Report

Gold edges higher in quiet summertime trading
JPM forecasts $2175 gold price by year-end 2024, Poland buys more gold

(USAGOLD – 8/11/2023) – Gold edged higher in quiet summertime trading as yesterday’s benign inflation report failed to motivate traders and probably any real change of heart among Fed governors. Gold is up $6 at $1920.23. Silver is down 3¢ at $22.76. Since the June 1 beginning of the summer doldrums, gold is down 2.33%, and silver, always the more volatile of the two metals, is down 6.55%. JP Morgan weighed in on gold this morning. As reported by YahooFinance, it expects the metal to hit $2012 by the middle of next year and $2175 by year-end based mainly on a complete reversal of Fed policy from hiking to cutting rates and continued central bank stockpiling. Buttressing JPM’s call on central bank buying, Poland announced yesterday boosting its reserves by another 22.4 tonnes in July. Since January, it has added 72 tonnes to its holdings.

Gold and silver price performances 
(Summer months, June 1, 2023 to present)
split pane chart sowing gold and silver's price performance since June 1 as a percent
Chart courtesy of TradingView.com • • • Click to enlarge

 

Share
Posted in Daily Market Report, dailyquotes |

Daily Gold Market Report

Gold trades to the upside as markets await today’s consumer price report
Bloomberg says report will reveal a wave of disinflation

(USAGOLD – 8/10/2023) – Gold is trading to the upside this morning as the markets await today’s consumer price report. It is up $7.50 at $1924.50. Silver is up 18¢ at $22.88. Bloomberg economists say today’s numbers will reveal a wave of disinflation “driven mainly by the deteriorating economic landscape.” OCBC Forex strategist Christopher Wong told Reuters this morning that “Outlook for gold would regain shine when markets move in to price in greater probability of rate cuts and U.S. dollar softness. And this hinges on how entrenched the disinflation trend is.”

Market analyst James Hyerczk framed the inflation-gold–trader triangulation neatly in an overview posted at Forex Empire yesterday. “Navigating these waters teeming with unpredictability is challenging,” he says. “While certain Federal Reserve members hint at a cessation to the rate hikes, others postulate the necessity of more hikes to curb inflation. As all eyes turn to the imminent CPI revelation, gold and silver stand sentinel, mirroring the market’s faith, or the lack thereof, in the robustness of the economy.”

United States Inflation Rate
Line chart showing US inflation rate through July 2023
Chart courtesy of TradingEconomics.com

Share
Posted in Daily Market Report, dailyquotes |

Daily Gold Market Report

Gold level as traders retreat to the sidelines ahead of tomorrow’s CPI report
‘Inflation is cooling, but prices are high, and Americans can feel it.’

(USAGOLD – 8/9/2023) – Gold is level this morning as traders took to the sidelines ahead of tomorrow’s pivotal inflation report. It is unchanged at $1928. Silver is down 8¢ at $22.78. According to Trading Economics, the consensus opinion is that CPI will come in at 4.1% annualized – down sharply from June’s 4.9%. Bloomberg ran a headline this morning that George Orwell might have appreciated: “Inflation is cooling, but prices are high, and Americans can feel it.” 

China added gold to its national stockpile for the ninth straight month with analysts saying the PBOC is “just getting started,” according to a KitcoNews report. Similarly, the World Gold Council reports that gold bar and coin investment in the Middle East reached a ten-year high in the second quarter of 2023. Commerzbank says that gold needs rate hike expectations to “disappear” before it resumes its climb. The investment bank expects that to happen during the fourth quarter returning the metal to the $2000 level. [Source FXStreet]

Share
Posted in Daily Market Report, dailyquotes |

Daily Gold Market Report

Gold drifts lower on sinking Chinese economy, caution ahead of inflation data
Mish Shedlock comments on favorable chart set-up for gold

(USAGOLD – 8/8/2023) – Gold drifted lower in early trading as China reported double-digit declines in both imports and exports, and investors took to the sidelines ahead of Thursday’s inflation data. It is down $11 at $1927. Silver is down 24¢ at $22.96. Mish Shedlock, the widely read editor of MIshTalk, recently had a few brief but supportive comments on the current technical set-up for gold. He says neither triple tops (like the one prominently displayed on the current gold chart) nor bottoms tend to hold. “If that view is correct,” he says, “gold is headed higher. Seasonally speaking, gold is heading into a favorable time of year. Finally, this has been a long 3-year consolidation period, with gold not too far from record highs.” He ends with some straightforward advice: “If you have faith in central banks, sell your gold. Otherwise, I suggest hanging on to it.”

Gold price
(Five year)
bar chart 5 year on gold
Chart courtesy of TradingView.com • • • Click to enlarge

Share
Posted in Daily Market Report, dailyquotes, Today's top gold news and opinion |

Daily Gold Market Report

Gold trades cautiously to the downside ahead of inflation reports, bond sales
World Gold Council reports solid coin and bar demand for Q2-2023

(USAGOLD – 8/7/2023) – Gold is trading cautiously to the downside as it begins a week that includes the all-important consumer and wholesale inflation reports. It is down $7 at $1939. Silver is down 21¢ $23.50. Also on the agenda is a massive offering of Treasury notes and bonds, sure to be closely monitored by bond market participants.

The World Gold Council reports a net deceleration in central bank purchases during the second quarter (year over year) but a solid increase in bar and coin demand (+6%). Despite the decline in central bank demand from above-average in last year’s second quarter, WGC still sees it as “resolutely positive.” Total demand is up 7% over the same quarter last year.

bar chart showing sector gold demand Q2-2023
Chart courtesy of the World Gold Council • • • Click to enlarge

 

Share
Posted in Daily Market Report, dailyquotes, Today's top gold news and opinion |

We are no longer updating this page.
We invite you to visit its replacement at the following link:

Daily headline news and opinion

Share
Posted in Today's top gold news and opinion |

Gold demand trends Q2 2023 – World Gold Council

––World Gold Council/Staff/8-1-2023

“Central bank buying slowed in Q2 but remained resolutely positive. This, combined with healthy investment and resilient jewellery demand, created a supportive environment for gold prices.”

USAGOLD note: Bar and coin demand increased by 6% year over year in the second quarter.

Bar chart showing strong gold coin demand during the second quarter 2023
Chart courtesy of World Gold Council

Share
Posted in Today's top gold news and opinion |

The USAGOLD Website
A guiding light for our current and would-be clientele since 1997

graphic image of light house beaming
Welcome newcomers!

When the USAGOLD website was established in 1997, there was no Google, no Facebook, no I-Tunes, no Amazon. Instead there was just a handful of scattered websites trying to figure what this new technology was all about and how it could be used to some advantage.  We were among that group.  Our idea of innovation in those early days was two spinning globes on either side of the USAGOLD logo.  We marveled at it; considered it state of the art.

But being among the first on the internet to have spinning globes was not our only achievement. We were also among the first to sponsor a Daily Market Report (1997), a Discussion Group (1997), Live Prices and Charts (2007) and a Mobile Website (2011) – to mention just a few of our ground-breaking internet ventures.  We await the next wave of innovation so that we can offer even more value to our regular visitors.

Through our 26-year presence on the world wide web, the philosophy underlying our website has always been a simple one – to act as a guiding light for our current and prospective clientele by providing a state of the art information portal coupled with a reliable and competitive brokerage service.  We had and still have no aspirations beyond that, and that pinpoint focus has paid dividends beyond anything we would have imagined in 1996.

From a humble beginning, we have grown to almost 800,000 visitors per month currently and there have been times when that count has been significantly higher. USAGOLD today remains one of the most highly referenced and visited web portals in the gold business. We once had a client tell us of visiting the Gold Souk in Dubai and being surprised that so many merchant stalls had USAGOLD on their computer screens. 

If you would like to gain a better understanding of what USAGOLD has to offer to you as a current or prospective client, the menu at the top of the page is a good place to start. 

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Interested in gold but struggling to find the right firm?
DISCOVER THE USAGOLD DIFFERENCE

Reliably serving physical gold and silver investors since 1973

Share
Posted in ClientInsights, Today's top gold news and opinion | Tagged |

‘Last hike of the cycle’: economists predict Federal Reserve is done with interest rate rises

Financial Times/Colby Smith/7-26-2023

graphic illustrating a sign of confusion“Nothing in the policy statement or the press conference led me to doubt our view that this will be the last hike of the cycle,” said Ellen Zentner, chief US economist at Morgan Stanley. “The consumer is slowing, jobs are slowing, inflation is slowing and all those big pieces of the economy have been coming in line with our expectations.”

USAGOLD note: The tussle between an adamant Fed and a dubious Wall Street continues ………

Share
Posted in Today's top gold news and opinion |

FOMZZZZ… But an inflation spike could wake us yet

Bloomberg/John Authers/7-27-2023

graphic image of walk in a deep, fearful wood

“The Fed promised us a nonevent and it delivered — give or take a few comments. The Federal Open Market Committee did indeed raise the benchmark fed funds rate by 25 basis points to the highest level in 22 years at 5.5%. But as that outcome had been rated a 99% probability when Wednesday dawned, it came as no surprise.”

graphic image of a book and reading glasses A Good Weekend ReadUSAGOLD note:  We are not yet out of the inflation woods……Gasoline prices, says Authers, could trigger a surprise summer wake-up call.

Share
Posted in Today's top gold news and opinion |

Short & Sweet
‘He clung to that which he could really trust, really own, really control’

photo of stacks of gold and silver coins

In an analysis posted at Daily Reckoning, Jeffery Tucker offered an opinion on inflation shared by a good many economists and investors. “Gradually,” he writes, “we’ve come to see the light. There will be no rolling back those price increases in general. There will be declines in the pace of increase here or there but overall prices have shifted upward, permanently.” With that in mind, he shares some family history: “There is nothing we can take for granted in this inflationary crazy economic environment, no rules of thumb that can really guide us. My father was a thrifty man, a truly great man, but also a believer in long-term value and truth. Yes, he loved gold and silver coins too, and very much so. He accumulated them throughout his life. As I look at that today, it is extremely obvious that this was one of his best financial decisions. He was never a day trader or a rah-rah techno champion. He clung to that which he could really trust, really own, really control. That seems like a good way to think even now.”

_______________________________________________________________________

Looking for something you can really trust, really own, really control?
DISCOVER THE USAGOLD DIFFERENCE

Reliably serving physical gold and silver investors since 1973

Share
Posted in Short and Sweet, Today's top gold news and opinion | Tagged , |

There’s a weird link between money and bees, and it goes back thousands of years

Science Alert/Adrian Dyer/7-25-2023

Greek gold coin portraying beegraphic image of a book and reading glasses A Good Weekend Read“Over the centuries between these two events, currency demonstrating a symbolic link between honey and money is surprisingly common. In a recent study in Australian Coin Review, I trace the bee through numismatic history – and suggest a scientific reason why our brains might naturally draw a connection between the melliferous insects and the abstract idea of value.”

USAGOLD note: All about the connections between bees, honey, and money……

Share
Posted in Today's top gold news and opinion |

‘Eye-popping’ $1 trillion third-quarter borrowing need from U.S. Treasury raises risk of buyers’ fatigue

MarketWatch/Vivien Lou Chen/8-1-2023

graphic representation of a tsunami“Just a day after the Treasury Department released a $1 trillion borrowing estimate for the third quarter, questions are being raised about the extent to which foreign and domestic buyers can continue to keep up their demand for U.S. government debt.”

USAGOLD note: This article details some of the problems accompanying this enormous issuance of government debt. It was published before Fitch’s downgrade announcement.

Share
Posted in Today's top gold news and opinion |

Notable Quotable

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

“There is nothing we can take for granted in this inflationary crazy economic environment, no rules of thumb that can really guide us. My father was a thrifty man, a truly great man, but also a believer in long-term value and truth. Yes, he loved gold and silver coins too, and very much so. He accumulated them throughout his life. As I look at that today, it is extremely obvious that this was one of his best financial decisions. He was never a day trader or a rah-rah techno champion. He clung to that which he could really trust, really own, really control. That seems like a good way to think even now.” – Jeffrey Tucker, Daily Reckoning

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Share
Posted in Notable Quotable, Today's top gold news and opinion | Tagged |

Fitch’s US debt-rating downgrade is bad news for stocks.

MarketsInsider/George Glover/8-2-2023

graphic illustration of US capital spewing dollars“August is usually the quietest month of the year for the stock market. But Fitch shattered any sense of summer calm last night when it slashed the US government’s credit score, in what could end up being a massive blow to President Joe Biden’s economic track record.”

USAGOLD note: Biden’s track record wasn’t exactly glowing before the Fitch announcement. A good many analysts have warned of late that the government’s fiscal stance – and that includes both the Biden administration and Congress – has become a danger to the economy and financial markets. The yield on the 10-year Treasury jumped from 4.01% to 4.105% after the Fitch announcement.

Share
Posted in Today's top gold news and opinion |

One hell of a head fake on gold

MishTalk/Mish Shedlock/7-31-2023

image of 500 gram gold bar with chart in background“Gold has big daily drop following Fed and ECB announcements. The pullback lasted 2 days before a big blast higher. In the wake of fluff announcements by the Fed and ECB in which no reporters asked any difficult questions, gold took a mini-dump then surged twice as much two days later.”

USAGOLD note: Mish posts a thumbnail analysis of the current gold market and concludes: “If you have faith in central banks, sell your gold. Otherwise, I suggest hanging onto it.” Worth a visit……

Share
Posted in Today's top gold news and opinion |

How to choose a gold firm
It may be the most important choice you make as a gold owner

photo shows choosing a king on the chessboard

It is surprising how many prospective investors simply dive into gold and silver investing without much in the way of a consumer inquiry. That lack of simple due diligence has ended up costing a good many investors thousands of dollars, and sometimes even hundreds of thousands before the damage is detected.

Here you will find some brief but useful guidelines
to help
you choose the right gold and silver company.


To end right, start right.
DISCOVER THE USAGOLD DIFFERENCE

Reliably serving physical gold and silver investors since 1973

Share
Posted in ClientInsights, Today's top gold news and opinion | Tagged |

Monetary vs fiscal dissonance and the return of QE

Zero Hedge/Crescat Capital/7-23-2023

“Following the COVID era, we have entered a period of fiscal dominance among major developed economies. Hence, the escalating debt burden is already near historical levels and compounding at an alarming pace. To sustain the current government spending deluge, we believe it is inevitable that the Fed and other monetary authorities reassume their fundamental role as the primary financiers of government debt.”

USAGOLD note: Crescat predicts “capital will divert away from US Treasuries and flow into gold.”

visualization of the relationship between the federal debt and gold

Chart courtesy of VisualCapitalist.com

Share
Posted in Today's top gold news and opinion |