Monthly Archives: October 2023

Today’s top gold news and opinion

10/31/2023

BlackRock warns investor disdain for mining threatens green transition (FT)
Complacency over supply of transition metals..

Be Smart — How To Recession-Proof Your Portfolio With Gold (Forbes)
Suggests 20-25% of wealth be invested in gold and/or silver

Universal basic income is working — even in red states (BusinessInsider)
“Economically stable people make better neighbors. When they aren’t worried about how they’re going to pay their bills, they tend not to come through your window at night.”

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Daily Gold Market Report

Harnessing Gold’s Low Correlation for Enhanced Portfolio Performance
Mitigating Market Risks with Gold’s Distinctive Characteristics

(USAGOLD – 10/31/2023) Gold remains relatively stable in early U.S. trading on Tuesday, just before the Federal Reserve’s monetary policy meeting. Gold is trading at $1994.80 this morning, down $1.30. Silver is trading at $23.00, down 33 cents. Gold has historically been recognized as a unique asset class that exhibits a low to negative correlation with other major asset classes, such as equities and fixed income. This distinctive characteristic of gold arises from its intrinsic value, its role as a hedge against inflation, and its status as a safe-haven asset during times of economic uncertainty. As a result, gold can act as a stabilizing force in a diversified portfolio, reducing overall volatility and enhancing returns. By including gold in an investment portfolio, investors can benefit from its diversification properties, which can help mitigate risks and provide a buffer against adverse market movements.

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Daily Gold Market Report

Safe-Haven Appeal Drives Gold Above $2000
Middle East Warfare and Fed’s Upcoming Rate Decision Fuel Market Momentum

(USAGOLD – 10/30/2023) On Friday, gold prices surged and closed at around $2006 per ounce, marking a notable increase and reflecting the heightened tensions in the Middle East. Gold is trading at $2001.04 this morning, down $5.33. Silver is trading at $23.52, up 40 cents. The surging prices were indicative of the metals’ best weekly performance in seven months, fueled not only by geopolitical unrest but also by the speculation around U.S. interest rates which are expected to be addressed by the Federal Reserve in the upcoming meeting on Wednesday.

Anticipation surrounding the Federal Reserve’s interest rate decision further bolstered the gold market as investors awaited crucial central bank policy meetings.  Additionally, the market is pricing in a significant chance that the Federal Reserve will maintain interest rates, which is perceived positively for gold prices. The amalgamation of geopolitical tensions and monetary policy anticipation created a conducive environment for gold’s price rally, pushing it closer to the $2000 mark, and reflecting a cautious and risk-averse sentiment prevailing among investors.
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Today’s top gold news and opinion

10/30/2023

Gold Is Now Beating the S&P 500 This Year (WSJ)
Gold up 9.3% this year, while the benchmark for U.S. stocks is up 7.7%

The Nasdaq’s fallen into a correction (YahooFinance)
Down about 23% year-to-date

Top gold refiner exits Swiss industry group over sourcing fight (Mining)
IValcambi SA has resigned from the Swiss gold refining association

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Today’s top gold news and opinion

10/27/2023

US economic growth accelerated to 4.9% in third quarter (FT)
8.0% increase in defense spending…

The US can’t grow its way out of its $33 trillion debt mountain (BuisnessInsider)
The government is on track to hit a record-high debt-to-GDP ratio by 2029

What’s Driving the Price of Gold? (NASDAQ)
Interview with Ruth Crowell, CEO of LBMA

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Daily Gold Market Report

Economic Confidence or Over-Optimism?
A Closer Look at Yellen’s Interpretation of Rising Long-term Bond Yields

(USAGOLD – 10/27/2023) The gold price continues to remain around the $1980 level and has all week. Gold is trading at $1982.89 this morning, down $1.82. Silver is trading at $22.78, down 1 cent. Treasury Secretary Janet Yellen spoke yesterday in a Bloomberg interview hours after data showed the US economy grew at an annualized rate of 4.9% in the third quarter, the fastest pace in nearly two years. In the interview she mentioned, “The surge in longer-term bond yields in recent months is a reflection of a strong US economy, not the jump in government borrowing driven by a widening fiscal deficit.”

Analyzing Yellen’s stance, it might be argued that her opinion regarding the robustness of the U.S. economy and the projection of sustained higher interest rates could be overly optimistic and does not capture the full picture. Last week, Federal Reserve Chair Jerome Powell enumerated several factors contributing to the rise in yields, echoing the economic resilience point made by Yellen. Contradictory to Yellen though, he also highlighted an increased attention to deficits as another potential “candidate” influencing these movements, along with other elements such as the Fed’s diminishing bond portfolio.

Simply summarized best by Sven Henrich:

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Daily Gold Market Report

Metals Focus
AI Boom to Revive Precious Metals Demand Amid Economic Concerns

(USAGOLD – 10/26/2023) The gold price continues to remain range-bound this week, showing minimal fluctuations. Gold is trading at $1978.26 this morning, down $1.46. Silver is trading at $22.76, down 10 cents. The surge in Artificial Intelligence (AI) technologies, particularly driven by the popularity of generative AI like ChatGPT, is expected to bolster industrial demand for precious metals in the coming year, Metals Focus reports. Despite the short-term challenges posed by high interest rates and economic uncertainties, the demand for metals such as platinum, silver, and gold, integral in chip manufacturing and other AI hardware components, is predicted to rise.

“Demand will rise for platinum alloys used in chip manufacturing, silver-palladium Ag-Pd multi-layer ceramic capacitors (MLCCs) in high power components, gold bonding wire in chip and memory packages, gold plating in printed circuit boards and palladium plating on lead frames,” Metals Focus added.
NVIDIA Grace Hopper Superchip
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Today’s top gold news and opinion

10/26/2023

More alarm bells sound on slowing demand for electric vehicles (Reuters)
High interest rates are derailing the ambitions of climate regulators and automakers to accelerate the shift to electric vehicles

How Romans pioneered silver recycling (Mining)
Gold impurities in silver coins and lead pollution in Greenland ice show that the Romans were pioneers of recycling

Interview: 3D Printing Platinum in the Jewelry Sector (3DPrint)
The most common method for precious metal Additive Manufacturing, is based mainly on laser powder bed fusion

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Daily Gold Market Report

Digital Currency Trends
Digital Yuan Makes Headway and Eurosystem Proceeds To Next Phase Of Digital Euro Project

(USAGOLD – 10/25/2023) Gold is starting to find its footing this morning after a rough start to the week. Gold is trading at $1975.85 this morning, up $4.88. Silver is trading at $22.95, up 3 cents. The first cross-border trade was settled in China’s digital currency at the Shanghai Petroleum and Natural Gas Exchange (SHPGX), where PetroChina International paid for a million barrels of crude oil using digital yuan. This is part of China’s broader effort to internationalize the yuan, particularly its digital version, for trade and finance. Meanwhile, the next phase of the digital euro project – the preparation phase – will start on 1 November 2023. It will involve finalizing the digital euro rulebook and selecting providers that could develop a digital euro platform and infrastructure.

USAGOLD Comment: Physical gold’s immutable nature and unparalleled role as preservation of wealth instrument throughout history offer an assurance that digital assets, susceptible to technological risks and hacks, can’t provide.
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Today’s top gold news and opinion

10/25/2023

Precious metals’ place in a portfolio (ABRDN)
Precious metals largely remain an underutilized and overlooked investment option.

Scientists Solve Mystery of Precious Metals in Earth’s Mantle (ExplorersWeb) (PNAS)
Elements that came to Earth through impacts from giant asteroids and protoplanets, all bind easily to iron

US consumers selling their gold to make ends meet  (KITCO)
The gold market continues to prove its worth as an essential store of value

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Today’s top gold news and opinion

10/24/2023

PRECIOUS APPRAISAL (Heraeus)
Gold surprisingly resistant in the face of yet higher treasury yields.

Behind the Curtain: Rattled U.S. government fears wars could spread (Axios)
U.S. officials say this confluence of crises poses epic concern and historic danger

Central Banks Support Gold & Solar PV Demand Buoys Silver  (Sprott)
Green technologies have emerged as the largest demand vector for silver

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Daily Gold Market Report

Economic Crosscurrents Stoke Gold Rally
An Insight into Recent Market Dynamics From Saxo Bank

(USAGOLD – 10/24/2023) Gold is continuing to take a breather from last weeks gains. Gold is trading at $1964.25 this morning, down $8.60. Silver is trading at $22.88, down 10 cents. Saxo Bank discusses the recent trends in the gold market, attributing the surge in gold prices to broader economic and geopolitical factors. The escalation of hostilities between Israel and Hamas has created concerns of a wider conflict in the Middle East, potentially disrupting crude oil and natural gas supplies to Europe. “The yellow metal has rallied by around 160 dollars during the past two week, it highlights a market where traders and investors are growing increasingly concerned, not only about the geopolitical landscape, but also about US fiscal policy, and whether the recent jump in both real and nominal yields will break ‘something.’”, says Ole Hansen from Saxo Bank.

Hansen also mentions, “The two charts below show the conundrum the market has been dealing with this month with gold surging higher while yields hit fresh highs. It is also worth noting that total holdings in bullion-backed ETFs continue to decline and, with this important part of the “paper” market still in sell mode, the recent bounce has been even more impressive.”

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Daily Gold Market Report

Cross-Currency Gold Surge
A Precursor to All-Time Highs in USD?

(USAGOLD – 10/23/2023) After last week’s significant gain, gold prices have cooled off slightly over the weekend.. Gold is trading at $1978.26 this morning, down $3.14. Silver is trading at $23.10, down 27 cents. Gold hitting all-time highs in currencies last week such as the British Pound, Australian Dollar, Euro, Yen, Yuan, and Won is a reflection of several intertwining global financial trends.  The global economic landscape in 2023 is characterized by worries of war, recession and shifts in monetary policies. The pause in monetary policy tightening and the ensuing financial volatility have steered investors towards gold, further pushing up its price in various currencies.

The trend of gold surging in other currencies can be a harbinger for its potential rise in USD. As gold edges closer to all-time highs, the weaker dollar and inflation are among the key drivers propelling it forward.  Furthermore, the precious metal gained 8.15% YTD 2023, indicating a positive momentum that may continue to drive gold prices towards record highs even in USD. The synchrony in gold’s price movement across different currencies underscores the global factors at play and suggests that a similar uptrend may be awaiting gold prices denominated in US dollars.
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Today’s top gold news and opinion

10/23/2023

China weighs options to blunt U.S. sanctions in a Taiwan conflict (Reuters)
Gold-denominated bonds?

Gold rallies as geopolitical turmoil overshadows rising bond yields (FT)
Gold breaks its long-term correlation with US Treasuries

Gold miners’ fat profits  (Mining)
Q3 profits are poised to skyrocket

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Daily Gold Market Report

Gold Gains Momentum on Powell’s Balanced Stance and Geopolitical Tensions
Traders See A 70% Chance Of No Rate Hike In December

(USAGOLD – 10/20/2023) In the past week, gold prices have rallied nearly 8% from its recent seven-month lows. Gold is trading at $1978.12 this morning, up $3.66. Silver is trading at $23.11, up 3 cents. Jerome Powell’s remarks yesterday had a nuanced impact on the gold market amid existing Middle East tensions. The Federal Reserve Chair’s comments left open the potential for more rate hikes due to a stronger than expected economy while also acknowledging emerging risks, necessitating cautious moves. This mixed message was not perceived as hawkish by the market, which in turn fueled hopes that the U.S. central bank might pause it’s rate hikes.

USAGOLD Comment: The market’s reaction denotes a complex interplay of geopolitical factors and monetary policy expectations, with Jerome Powell’s cautious stance providing a supportive backdrop for gold prices in the near term amidst an uncertain global landscape.

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Today’s top gold news and opinion

10/20/2023

Powell says inflation is still too high and lower economic growth is likely needed to bring it down (CNBC)
The central bank would be “resolute” in its commitment to its 2% mandate..

Researchers in Japan succeed in collecting deep-sea gold using algae (NHK)
They collected gold from near a 700-meter-deep hydrothermal vent

OTC demand pushing gold to Asia could be why prices can withstand 5% bond yields  (KITCO)
This past year, 500 family investment offices were opened in Singapore, compared to about 40 per year pre-COVID

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Daily Gold Market Report

Shining Prospects
Analyzing the Bullish Implications of Gold’s Performance Above Crucial SMAs

(USAGOLD – 10/19/2023) Gold is trading at $1955.19 this morning, up $7.64. Silver is trading at $22.89, up 3 cents.The ongoing crisis in the Middle East may heighten risk aversion in the broader market, which is likely to maintain a supportive base for the safe-haven yellow metal, at least in the near term.

The current physical gold market demonstrates a notable bullish interplay with its 200, 100, and 50-day simple moving averages (SMA). The alignment of the gold price above all three of these SMAs can create a strong bullish sentiment among traders and investors. It suggests that gold is performing well across different time frames, which can attract more buying interest and potentially push the price higher. Additionally, some traders use these levels as support levels, where the commodity might find buying interest preventing the price from falling below these averages. However, it’s crucial to note that while these indicators can be useful, they are not foolproof.

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Today’s top gold news and opinion

10/19/2023

China Sells Most US Securities in Four Years Amid Yuan Weakness (Bloomberg)
The treasury sell off continues…

The Myth of the Great Boomer Wealth Transfer (BusinessInsider)
Probably going to spend all their savings before they can pass anything down to their children..

ECB starts preparation for digital euro in multi-year project  (Reuters)
Small step in a multi-year project

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Today’s top gold news and opinion

10/18/2023

Have central banks lost control over the gold price? (GoldMoney)
IGold prices have completely detached from model-predicted values.

Bank of America’s unrealized losses on securities rose to $131.6 bln (Reuters)
Is this real life?

Yellen says U.S. can simultaneously support Israel and Ukraine war aims  (MarketWatch)
33 trillion in debt, but can afford 2 foreign wars simultaneously…

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Daily Gold Market Report

Industrial and Technological Advancements Fuel Unprecedented Demand for Silver
Supply Deficit Looms

(USAGOLD – 10/18/2023) Gold is trading at $1947.83 this morning, up $24.65 (+1.28%). Silver is trading at $23.17, up 36 cents (+1.44%). As the ongoing conflict in the Middle East continues to escalate, we continue to see all commodity prices climb higher.

A recent article titled, “Copper and silver: The electrical metals“, delves into the increasing demand for silver driven by its myriad industrial applications, notably in the green energy sector, automotive industry, and the 5G technology. Mills concludes, “Silver is an important component of brazing and soldering, the process of joining pieces of metal together.” The Silver Institute says that adding silver to the process of soldering or brazing helps produce smooth, leak-tight, electrically conductive and corrosion-resistant joints. The demand for silver in brazing and soldering, crucial in the automotive, aerospace, air-conditioning, refrigeration, and electric power distribution industries, is forecasted to rise by 58.8 million ounces by 2030.

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