Spot gold gained 13% in 2023 and so far this year, is up 6%. Thursday March 28th, gold ended the day at US$2,233.00 oz, a strong performance given the headwinds facing the precious metal.

These include a strong US dollar, positive real yields (Treasury yields minus inflation above zero), investors selling their gold ETFs, and inflation coming down from 40-year highs.

Demand is being driven by strong central bank buying, with developing nations in particular stocking up on bullion as insurance against having their foreign currency reserves frozen like happened to Russia after it invaded Ukraine; and geopolitical instability, with wars in Ukraine and Gaza still raging and there’s China’s positioning on Taiwan causing stress. Commercial shipping in the Red Sea continues to come under attack from Houthi rebels.

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Iron Will

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