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]