Daily Gold Market Report

The Stealth Gold Rally:
Unpacking the Unseen Forces Driving Prices Higher

(USAGOLD – 3/7/2024) Gold prices are hovering slightly below session peaks around $2,164 per ounce following a weekly initial jobless claims report that met forecasts for American workers. Gold is trading at $2155.36, up $7.18. Silver is trading at $24.28, up 12 cents. Ross Norman’s (CEO of Metals Daily Ltd) article discusses the recent, unexpected rally in gold prices, suggesting that understanding the buyers and their motivations could reveal the rally’s sustainability. Unlike event-driven or speculative gains, which are often short-lived, this rally could be of a higher quality, driven by strong conviction among buyers. Despite declining interest in gold in the West, with significant drops in ETFs and physical demand, China’s robust demand seems to be compensating, driving gold prices up in a “stealth rally.” Norman speculates that the rally may not be solely due to expectations of a Fed rate cut or declining US treasury yields, as traditional market indicators like the gold/silver ratio and ETF demand don’t fully support these explanations. Instead, he suggests that official sector buying, particularly by central banks diversifying away from dollar assets in response to geopolitical tensions and financial sanctions, might be a key driver, though this remains speculative. The increase in gold prices, now reaching new highs, underscores the potential significance of these under-recognized factors.