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.”