Daily Gold Market Report

Rise of the East
Expanding Gold Trading Infrastructure and Central Bank Acquisitions

(USAGOLD – 10/16/2023) Gold opens the week by giving back a portion of the significant gains it posted last week. Gold headed into the weekend up over $60/ounce on Friday alone, and is currently trading at $1916.81, down -$14.21 on the day. Silver is trading at $22.64, down 8 cents. With no significant news emerging from the Middle East over the weekend, and numerous countries advocating for peace, both the global community and the gold market have experienced a collective sigh of relief.

Ronni Stoeferle, managing partner of Incrementum AG, highlights in a newly published article a trend of increasing gold flow towards the East, driven by economic, demographic, and military shifts on the global stage. Central banks in the East are among the major buyers of gold, with China leading, reflecting a continuation of gold acquisition trends witnessed in 2022. The BRICS nations, particularly Russia, India, and China, are notable buyers, which coincides with a reduced holding in US Treasuries, making gold a more appealing reserve asset. Furthermore, infrastructure for gold trading is expanding in the East, with China and Russia spearheading collaborations to link their gold markets, aiming to establish a robust gold trading infrastructure independent of Western trading centers.

USAGOLD Comment: The shifting gold dynamics underscore a transition in global economic power, which will affect the valuation and global market position of gold. We are here to help USAGOLD investors fine tune their strategies, taking into account the growing Eastern markets’ influence on gold demand and pricing, to ensure they navigate the evolving landscape adeptly.