Gold up marginally as we begin what could be a turbulent week for financial markets
Saxo Bank sees the gold market as ‘resilient,’ maintains bullish outlook
(USAGOLD – 6/12/2023) – Gold is up marginally this morning as we begin what could be a turbulent week for financial markets. It is up $3 at $1966.50. Silver is down 3¢ at $24.34. The Treasury Department will conduct a run of bond auctions to replenish its depleted coffers on Monday and Tuesday. Headline inflation data is due Tuesday, and the Fed will announce its rate decision on Wednesday.
“Gold prices,” says Saxo Bank’s Ole Hansen in a report issued Friday, “continue to be directed by the ebb and flow of US economic data and with that speculation about the short-term direction of US rates.… While not ruling out additional short-term weakness, the market is showing resilience, with silver currently outperforming gold while the miners are still struggling to find a bid amid the current stock market rally.” Overall, the bank maintains a bullish outlook for the metal based on continued dollar weakness, recession risks, strong central bank demand, sticky inflation, and building geopolitical tensions.
Chart courtesy of the World Gold Council • • • Click to enlarge
