Gold takes sharp turn to the upside on mixed employment signals,
sudden bank collapse in California
(USAGOLD – 3/10/2023) – Gold took a sharp turn to the upside amidst mixed signals on employment, i.e., higher-than-expected gains in non-farm payrolls, and a higher-than-expected unemployment report. It is up $12 at $1840. Silver is up 34¢ at $20.48. The metals are also getting a boost from the sudden collapse of one California bank and the potential collapse of another. The banks’ problems were brought on, says Bloomberg, by holdings of “low-interest bonds that can’t be sold in a hurry without losses. So if too many customers tap their deposits at once, it risks a vicious cycle.”
“The faster you raise interest rates,” says Capitalight Research’s Chantelle Schieven in a recent Kitco News interview, “the faster something is going to give, that something is going to break. Gold doesn’t need a crisis to move higher, but it definitely loves a crisis.”
