Daily Gold Market Report

Gold’s Unexpected Rebound:
How It Overcame Higher Yields and a Strong Dollar

(USAGOLD – 2/21/2024) Gold prices are unchanged in early trading Wednesday. Gold is trading at $2028.06, up $3.65. Silver is trading at $23.01, up 1 cent. Despite a backdrop of higher bond yields, a stronger US dollar, and no major escalation in geopolitical tensions in the Middle East—conditions typically unfavorable for gold—the precious metal demonstrated resilience in early 2024. Gold’s dip below $2000 per ounce was short-lived, as it quickly rebounded, indicating strong buying interest even at historically high levels. David Scutt of City Index suggests this rebound has potential for further gains, particularly as the US dollar rally shows signs of fatigue amid rising inflation expectations. The inverse relationship between gold and the US dollar index (DXY) has been notably strong, hinting at a weakening dollar providing a tailwind for gold prices. Additionally, market-based inflation expectations are rising, which could further support gold as a hedge against inflation. Despite the adverse macro environment and volatility following US economic reports, gold’s recovery to its previous trading range suggests a bullish outlook, with buying opportunities on pullbacks towards $2008 seen as offering favorable risk-reward scenarios.

Share

 

advertisement for USAGOLD's Top Gold News and Opinion page

Call USAGOLD's Order Desk at 1-800-869-5115 extension 100USAGOLD's in-depth intro to gold and silver ownership

Market Data by TradingView Delayed data except FOREX

Disclaimer – Opinions expressed on the USAGOLD.com website do not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such, USAGOLD does not warrant or guarantee the accuracy, timeliness, or completeness of the information found here. The views and opinions expressed at USAGOLD are those of the authors and do not necessarily reflect the official policy or position of USAGOLD. Any content provided by our bloggers or authors is solely their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.

Share