Daily Gold Market Report

MUFG Stands Firm on Gold:
A Bullish Outlook Amid Market Volatility and Geopolitical Tensions

(USAGOLD – 2/20/2024) Gold prices are posting gains after the holiday weekend in early trading Tuesday. Gold is trading at $2027.00, up $9.79. Silver is trading at $23.13, up 13 cents. MUFG, Japan’s largest bank and a significant voice in the commodities market, recently reiterated its 2024 Gold outlook, maintaining its price target of $2350/oz even after a market selloff, distinguishing itself from other financial institutions like UBS, which lowered its gold price forecast to $2200/oz. MUFG’s position is notable for several reasons: it’s based on research released post-selloff, it’s unaffected by US Dollar politics due to its non-US base and non-bullion dealer status, and it reflects confidence in gold’s resilience amid uncertain US monetary policy and inflation dynamics. Despite challenges from higher interest rates, MUFG underscores the importance of robust emerging market central bank purchases and gold’s role as a geopolitical hedge, factors central to its bullish stance. The bank acknowledges potential downside risks but remains constructive on gold, recommending a long position in anticipation of continued demand, especially from China and India, and gold’s safe-haven appeal amidst geopolitical tensions and economic uncertainties.