Daily Gold Market Report

The Bullish Case for Gold:
Central Banks, Rate Cuts, and Investment Strategies

(USAGOLD – 4/5/2024) Gold prices are under pressure testing initial support at $2,300 an ounce as the U.S. labor market remains red hot. Gold is trading at $2291.05, up 10 cents. Silver is trading at $26.67, down 25 cents. Bob Haber of Forbes recently wrote an article that discusses the current state and future prospects of gold investment, drawing an analogy between the unpredictability of March Madness brackets and the stock market. Despite the unpredictable nature of both, the article argues that asset allocation in investing, unlike sports betting, is based on solid mathematical principles. It highlights the recent breakout of gold prices to new all-time highs above $2,300 per ounce, despite no significant geopolitical crises or Federal Reserve rate hikes, which are typically drivers of gold price surges. Non-US Central Banks are now major buyers of gold, significantly increasing their purchases to mitigate dependence on the US Dollar. He suggests that the Federal Reserve’s indication of halting interest rate hikes and the commitment to cutting rates before inflation hits 2% could be the catalyst for the recent gold price surge.