This weeks roundup of Gold bullion prices, news & products.
–Core Bullion Traders Desk.
Read on for your snapshot of this weeks markets with a roundup of Gold Bullion Prices, Products and News.
Gold Prices This Week:
Monday – Gold and silver prices are slightly up in quieter early U.S. trading. This week was a big week for U.S. economic reports, so traders and investors are likely to become a bit more tuned in as the week progresses.
On Tuesday, The Gold price sees a solid bounce on Tuesday morning, but analysts say Despite gold’s rally, spot gold prices are still at risk of trending below $1,900 an ounce.
On Wednesday with the gold price continuing to rise, this would seem to be bullish confirmation from key technical indicators, and could also get a further push from U.S.-China tensions and weaker economic data in the coming days.
Thursday, The gold market is not seeing any significant moves in reaction to the latest inflation data released in the U.S. Prices are continuing upwards near a three-week high following weaker employment numbers on Tuesday and Wednesday.
On Friday, Gold prices held steady gaining near session highs as the U.S. labour market appeared relatively stable at lower levels last month. U.S. nonfarm payrolls rose by 187,000 in August – this monthly figure was above the market consensus estimate of around 169,000. Despite this, the gold market is seeing a little bullish momentum in its initial reaction to the latest employment data.
Gold Price Week-Summary….The Low-down:
Starting the week at €1,772/oz and finishing the week on €1,801/oz this was another positive week for gold. With the price increase due mainly to U.S data figures, the precious metals sector flourished with bullish activity for the metals markets. This suggests no further interest rate hikes from the Federal Reserve would be better for consumer and commercial demand for the metals. Watch on, for what could be a positive near future run for gold.
General Markets Summary:
• U.S. Unemployment rate hits 17- month high. Friday’s closely watched nonfarm payrolls report appeared to confirm loosening labour market conditions. The U.S. Labour Department reported that employers added 187,000 jobs in August, slightly above consensus expectations, but gains for the previous two months were revised lower by a combined 110,000.
• Expectations grow that the Fed will remain on hold for the rest of the year. Atlanta Federal Reserve Bank President Raphael Bostic appeared to give sentiment a boost on Thursday, telling a conference in South Africa that he believed the current level of interest rates was “appropriately restrictive” and on track to bring down the inflation rate to the Fed’s target of around 2.0%. Along with the inflation and jobs data, his comments seemed to bolster hopes that the Fed would forgo another rate increase this year.
• European headline inflation and jobless rates hold steady – core inflation slows. The annual inflation rate in the eurozone was steady at 5.3% in August, according to a preliminary estimate from Eurostat, the European Union’s official statistical office. The result was slightly higher than the 5.1% expected by economists polled by FactSet.
• UK mortgage approvals shrink, house prices drop again. Bank of England mortgage data showed that the number of home loans approved (but not yet completed) in July dropped 10% from the prior month. Meanwhile, UK house prices fell 5.3% in August—the largest decline since July 2009.
• In China, Stocks rise. After the Chinese government issued a series of stimulus measures aimed at reviving the economy. The blue chip CSI 300 Index and Shanghai Composite Index both advanced for the week. In Hong Kong, the benchmark Hang Seng Index rose for the week ended Thursday after financial markets were closed Friday due to the approach of a typhoon.
The wider outlook for Gold:
“How does the gold price get to $10k?…. BRICS expansion, gold-backed currency, monetary reset.” – says Willem Middelkoop author of “The Big Reset”.
Willem Middelkoop told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News last week “This BRICS conference is the next step in a financial economic war. And I’m afraid it’s all connected.”
The BRICS formal invitation of Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates, and Saudi Arabia to join the bloc moves the world a step closer to a “very dangerous phase” for the U.S. and perhaps a major conflict, according to Willem Middelkoop, Founder and CIO of the Commodity Discovery Fund.
The new BRICS memberships will take effect from January 1, 2024. However, out of the six new members, Saudi Arabia is yet to officially confirm, with the country’s Foreign Minister Prince Faisal bin Farhan stating, “We await further details” and “based on this information and in accordance with our internal procedures, we will make the appropriate decision.”
What does the BRICS expansion mean? BRICS — Brazil, Russia, India, China and South Africa — represent 42% of the global population, 30% of the world’s land territory, 26% of global GDP, and 18% of global trade, according to the World Bank. With six new members joining its ranks, that would increase to 46% of global population, 29% of global GDP, and 25% of global exports.
The most significant change will be noticed in the share of global oil production. Prior to the expansion, the BRICS were in control of around 20% of the global oil output. And after Saudi Arabia, UAE, and Iran join, the BRICS would account for at least 42% of global oil production, according to ING.
This year’s BRICS summit highlighted that the next summit would focus on moving forward towards some form of common currency. Following much speculation prior to the summit, the finance ministers and central banks of the BRICS members received instructions to look at a common currency and make this a priority for next year’s summit, which Russia is hosting in October 2024.
Russia and Brazil have been the biggest supporters of the BRICS common currency that could be backed by commodities and rival the U.S. dollar.
“If this is the start of Bretton Woods III, if this is the start of a new monetary system centered around gold and commodities, that’s the most important topic of the last few decades,” Middelkoop said.
China will lead this effort, with Middelkoop describing the new currency as a settlement currency.
What ‘The Big Reset’ means for the international monetary system and gold price.The international monetary system is ‘manmade’ and it is possible to change it, Middelkoop told Kitco News. “We could move away from a dollar-entered system towards a new phase for the international monetary system, where we could use a new common currency,” he said. “It might be a good idea to restructure the debt and revalue gold.”
Gold is very likely to play a key role in the new system because of how much gold is owned by central banks around the world.
“All countries east of Germany have been accumulating large amounts of physical gold. And this is a sign in itself because it clearly shows that countries expect something will happen within the monetary system,” Middelkoop said. “And even the Dutch central bank president has said that the Dutch still have a lot of gold because you need gold to restart the system when something goes wrong.”
But the big question is which country will make the first move. Middelkoop is not ruling out the U.S. surprising other countries by making the dollar gold-backed again.
“This goes for China, Russia, the EU, and the U.S. (if) you revalue gold to a much higher level, you can save the central banks’ balance sheets. And I still expected that to happen one day,” he said. “Who will move first? Who will start to back its currency with gold first? There are very few steps you can take as central bankers to rescue this monetary system.”
Middelkoop expects a very strong move in gold and silver in the next 5 to 10 years.
“You can also look at the ratio between gold and the amount of fiat money in circulation. We’ve seen gold readjust and revalue much higher … in the 1930s, in the 1970s, and between 2000 and 2011,” he said. “So once gold starts to run, and especially in a re-evaluation scenario, it will go up 5x, 8x, 10x. So expect gold to move to $10,000.”
The revaluation of gold in this big monetary reset is just a matter of time, according to Middelkoop.
THIS WEEKS PRODUCT FOCUS:
The 1oz U.S. Gold Eagle Coin
The American Gold Eagle is an official gold bullion coin of the United States. Authorized under the Gold Bullion Act of 1985, it was first released by the United Sates Mint in 1986. Because the term “Eagle” also is the official United States designation for pre-1933 ten dollars gold coins, the weight of the bullion coin is typically used when describing American Gold Eagles (e.g., “1/2-ounce American Gold Eagle”) to avoid confusion. The total weight of the coin is 33.93grams but it contains 1 full Troy oz (31.1grams) of pure 24 carat gold.
The obverse design features a rendition of Augustus Saint-Gaudens ‘ full-length figure of Lady Liberty with flowing hair, holding a torch in her right hand and an olive branch in her left, with the Capitol building in the left background. The design is taken from the $20 Saint-Gaudens coin which was commissioned by Theodore Roosevelt to create coins that look like the ancient Greek and Roman coins.
From 1986 to 2021, the reverse design by sculptor Miley Busiek Frost (MB) featured a male eagle carrying an olive branch flying above a nest containing a female eagle and her eaglet. Frost says that her eagle design of the family of eagles is “a symbolic tribute to the American family, senior citizens and young people. Frost’s design drawing was sculpted for the reverse of the Gold Eagle by US Mint sculptor – engraver Sherl Joseph Winter (JW). Hence, on the reverse of these coins, the initials MB and JW are inscribed.
In 2021, the US Mint introduced a new reverse design on the American Gold Eagle featuring a close-up head portrait of an eagle. This design was created by US Mint artistic designer Jennie Norris (JN) and sculpted by US Mint medallic artist Renata Gordon (RG). Hence, Gold Eagles from 2021 onwards, show the initials JN and RG on each side of the eagle head design. Norris explains her design inspiration as follows: “The American Eagle is such a noble bird. I was hoping to capture the intensity of his stare through the close cropping. His gaze speaks of pride and wisdom passed down through generations of time.”
U.S Gold Eagle coins and all other gold coins and bars are available to order from Core Bullion Traders today.
Disclaimer & Copyright 2023
Although every effort has been made to undertake this work with care and diligence, Core Bullion Traders do not guarantee the accuracy of any forecasts or assumptions. Nothing contained in this editorial constitutes an offer to buy or sell securities or commodities and nor does it constitute advice in relation to the buying or selling of investments. It is published only for informational purposes. Core Bullion Traders does not accept responsibility for any losses or damages arising directly or indirectly from the use of this information or data.