Daily Gold Market Report

Gold Gains Momentum as U.S. Inflation Slows
Fed Rate Hikes Questioned

(USAGOLD – 11/16/2023) Gold is rallying following the recent release of employment data, which unexpectedly revealed significant weaknesses in the U.S. labor market. Gold is trading at $1,973.24, up $13.39. Silver is trading at $23.96, up 52 cents. Saxo Bank reports the unexpected slowdown in inflation raised expectations that the Federal Reserve might end its rate hiking cycle, leading to a surge in global stock markets and a decrease in the U.S. dollar’s value. “Having just found support near $1930, the news helped send gold higher,” says Ole Hansen, Head of Commodity Trading. Gold’s rally is supported by central bank purchases and investor demand, with further upside potential if interest rates peak and reduce the cost of holding non-interest-bearing metals like gold. Even hedge funds like famed David Einhorn’s Greenlight Capital, snaps up SPDR Gold Trust GLD as it cuts stake in top two holdings, U.S. homebuilder Green Brick Partners and Pennsylvania coal miner Consol Energy, Morningstar reports.

USAGOLD Comment: Gold ETF total holdings have been drawn down for close to 18 months. Will the total holdings increase from here with hedge funds jumping in now?