Daily Gold Market Report

Navigating Market Uncertainties
The Protective Shield of Gold in Turbulent Times

(USAGOLD – 10/9/2023)

Gold opened higher this morning after a weekend that saw a marked increase in geopolitical turmoil in the Middle East.  It is up $12, trading at $1845 and change. Silver is up 8 cents at $21.65.

The Israeli government formally declared war Sunday and the WSJ is reporting that Iran helped plot the attack on Israel. This was a truly horrific weekend of events. Described as the ‘worst attack on Israel since the Yom Kippur War’ (1973), this escalation of geopolitical tensions has been reflected in the gold price this morning. “This is a good example of why people need gold in their portfolios. It is a perfect hedge against international turmoil,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

USAGOLD Comment:  It was only about a week ago that the true ‘non-event’ of the US Government averting a shut down was seen as a yet another net negative for the gold market, prompting a slide from the mid $1800’s all the way to support around $1815.  The Israel/Hamas conflict, for the moment, and understandably, is taking center stage in the news cycle.  But not to be overlooked is the absolute carnage in the US Bond market, the continued explosion of US government debt, and the stark reality that interest payments on that debt have now officially surpassed defense spending and are only accelerating.  International conflict does often lead to increased gold demand – sometimes only temporarily, sometimes for sustained periods – but our focus remains on the underlying economic fundamentals, which are ultimately the true long term drivers of investment demand in precious metals.  Much to cover this week…stay tuned…