Daily Gold Market Report

Economic Crossroads:
The US’s Path to Preserving its Living Standards

(USAGOLD – 2/13/2024) Gold and silver prices are lower, following a higher-than-expected U.S. inflation report. The still-high core CPI puts Fed May rate-cut hopes in doubt. Gold is trading at $2000.63, down $19.42. Silver is trading at $22.30, down 40 cents. In a recent podcast, VBL of GoldFix outlines the precarious position of the U.S. economy due to its reliance on external financing through U.S. Treasuries to sustain its standard of living. It explores the necessity of nationalizing foreign-held debt and enticing foreign investment with alternatives to U.S. Treasuries to maintain economic stability. He discusses the diminishing global appetite for U.S. Treasuries due to various factors, including geopolitical tensions and the need for countries to invest domestically. Valentin Giust Global Macro Strategist of Credit Agricole, also warns, “The US features a large Capital Accounts deficit, driven by a structural trade deficit [We spend too much] and despite a positive income balance. In other words, the US is structurally living beyond its means.”