Daily Gold Market Report
Shifting Global Trade Dynamics
China-Saudi $6.98 Billion Currency Swap Agreement
(USAGOLD – 11/21/2023) Gold prices popped higher to start the day, even surpassing $2,000 for a brief period during early trading this morning. Gold is trading at $1,997.73, up $19.77. Silver is also up, trading at $23.85, up 40 cents. Bloomberg reports The People’s Bank of China and the Saudi Central Bank have established a significant bilateral local currency swap agreement, valued at 50 billion yuan (approximately 6.98 billion U.S. dollars or 26 billion Saudi riyals). This agreement, valid for three years with the possibility of extension, marks a notable shift in the financial relationship between China and Saudi Arabia, indicating a move towards using local currencies in bilateral trade, including potentially in the oil sector. This step could signify a broader trend of reducing global reliance on the US dollar in international oil transactions.