Daily Gold Market Report

The East Rises in Gold Markets:
A Shift in Global Pricing Power

(USAGOLD – 4/8/2024) Gold prices once again hit an overnight all time high of $2354.04/oz but has since faded back this morning. Gold is trading at $2327.44, down $2.09 cents. Silver is trading at $27.64, up 14 cents. Henry Johnston of RT discusses the significant shift in the gold market, highlighting how the control of gold pricing is moving from the West to the East, particularly due to increased demand in China and central bank purchases. He outlines the historical context of gold as a store of value and its transition from being part of the Bretton Woods system to becoming a traded commodity through futures contracts. The breakdown of the correlation between U.S. real interest rates and gold prices, especially noticeable since the Ukraine conflict in 2022, indicates a profound change in the gold market dynamics. Western institutional investors have been net sellers, while Eastern demand, especially from China and central banks, has surged, driving gold prices to new highs. This shift is seen as part of a broader “hidden dedollarization” and a move towards gold as a neutral reserve asset amidst geopolitical tensions and financial instability.