Daily Gold Market Report

Shanghai Pioneers $14M e-CNY Gold Trade
A New Era for Precious Metals

(USAGOLD – 12/22/2023) Gold prices are almost up a percent this morning as an underlying measure of consumer prices rose in November by less than forecast, reinforcing the Federal Reserve’s pivot toward an outlook for lower interest rates next year. Gold is trading at $2061.01, up $15.06. Silver is trading at $24.43, up 1 cents. The completion of the first-ever $14M cross-border settlement for precious metals using China’s digital yuan (e-CNY) in Shanghai marks a significant milestone. Facilitated by the Shanghai Financial Exchange International Board and the Bank of China’s Shanghai branch, this transaction showcases the growing potential of central bank digital currencies (CBDCs) in enhancing the efficiency and security of international gold trades. While the digital yuan is spearheading pilot tests and expanding partnerships globally, this development also signals a shift towards a more digitized, streamlined approach in the precious metals market. As traditional gold transactions evolve with these technological advancements, it’s crucial to recognize and adapt to the potential impact and opportunities CBDCs present for future cross-border gold purchases and the broader trade environment.