Precious Metals Weekly Market Update - November 22nd 2023

Gold has once again rallied, crossing the $2000/oz USD mark, with silver also exceeding $24/oz. This upward trend persists despite a lack of new geo-political and macroeconomic headlines this week.

In the last 30 days, the USD Index has dipped by 2%, a positive indicator for gold. It's crucial to monitor the strength of the USD closely, as it directly correlates with the gold price.

Gold ETFs saw a substantial increase, adding 345,000 oz yesterday, marking the most significant one-day inflow since the end of October.

Year-to-date, Central Banks have purchased 800 tonnes (as of Q3’23), putting them on track to match the record-buying pace set in 2022. This continuous buying from Central Banks provides a solid foundation for the gold price.

Asia, particularly India, has shown strong buying demand, importing significantly more gold in October than forecasted last month.

Summing up the current market sentiment:

1) The Fed has concluded its hiking.

2) Ongoing wars continue to support continuous Central Bank and safe haven buying.

Our stance remains cautiously bullish, and we believe gold remains a market worth buying, but are aware that pullbacks from current price levels remain possible.

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Mark Yaxley is the CEO for Strategic Wealth Preservation (SWP) a fully integrated precious metals dealer and global storage provider. Mark began his precious metals career back in 2006 with Kitco Metals and co-founded SWP in the Cayman Islands in 2014. He now spends his time with SWP’s many individual and commercial clients, helping them reach their specific investment goals. His hit YouTube series ‘Inside the Vault’ has helped millions of investors better understand owning gold and silver bullion.