Daily Gold Market Report

Gold Glitters Amid Global Uncertainty:
Record Highs Despite Strong U.S. Economy

(USAGOLD – 3/12/2024) Gold and silver prices are lower and hitting fresh lows in early trading on Tuesday in response to a U.S. inflation report that slightly surpassed market forecasts, leading to some investors to take some profits. Gold is trading at $2160.08, down $22.67. Silver is trading at $24.03, down 44 cents. Despite a strong U.S. stock market and economy, gold prices have soared to a record high, trading at $2,195 per ounce on Friday, with significant gains both year-to-date and over the past 12 months. This rally is surprising given that gold typically spikes during economic crises, not periods of market strength. The surge in gold’s value is partly due to weaker economic growth and stock performance in non-U.S. markets, particularly in developed economies like Germany, Japan, and the United Kingdom. Chinese investors, facing a commercial real estate crisis, have shown “phenomenal” demand for gold as a hedge against economic instability. In the U.S., investors are turning to gold to bet against potential inflation, reposition portfolios after the stock surge, and protect against geopolitical instability, including conflicts involving Israel, Hamas, Russia, Ukraine, and uncertainties surrounding the U.S. presidential election.