American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Ross Norman: Gold’s Record Highs Driven by China, What Happens Now?

by admin May 8, 2024
May 8, 2024
Ross Norman: Gold’s Record Highs Driven by China, What Happens Now?

To start, he noted that the buying that took gold to the US$2,050 or US$2,100 level was largely high-quality purchases from central banks, which have been adding the yellow metal to their coffers at a strong pace.

‘Central bank buying is quality because it’s unlikely to be sold if there’s a significant price correction. It’s for the very long term — think multi-generational,’ Norman said. He added that Chinese buying also supported that move.

‘(Chinese) retail buying is strong, central bank buying is strong. Institutional buying is strong on exchange-traded funds. Added to that, China is having its Costco (NASDAQ:COST) moment in the sense that Gen Z and Millennials are buying gold — at high premiums might I add — in gold beans,’ Norman continued.

All of those factors were in place earlier this year, but on March 1, when gold started to take off, something changed.

‘It was clear that there was a very significant large player in the market, and they were driving it massively higher,’ said Norman. ‘Spoiler alert — it was more China. Even more than we expected.’

He determined that the buying was coming from speculators on the Shanghai Futures Exchange (SHFE).

‘The Chinese threw themselves speculatively at gold. They took it to an all-time high of US$2,430, US$100 above where we are now. And then the market corrected lower. Now, the reason for that is the exchanges, particularly the Chinese exchanges, (the Shanghai Gold Exchange) and SHFE, significantly increased initial margins, effectively putting a speed bump in terms of trading gold. The COMEX did the same, by the way, as well at the same time. The exchanges are saying these markets are too hot, calm down. We’re going to make it more expensive for you to deal in them.’

Once that happened, Chinese traders became less interested and the gold price pulled back.

‘In a nutshell, if you like, gold has moved higher, significantly higher, to around US$2,100, on quality buying. The last US$200 on top of that arguably is of a vulnerable nature because it’s futures buying,’ he said.

Watch the interview above for more from Norman on what’s going on with gold right now.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Next Generation DLE Provider Electralith Produces 99.9% Pure Battery-Grade Lithium Hydroxide from Mandrake Brine
next post
An Indian woman accused her husband of forcing her to have ‘unnatural sex.’ A judge said that’s not a crime in marriage

Related Posts

Hong Kong stocks decline as investors react to...

September 16, 2024

Mernova Q3 Revenue Update

July 24, 2024

Invitation to Participate in Share Purchase Plan

February 10, 2024

Micron stock price forecast ahead of earnings: buy...

December 14, 2024

SNX to Follow up 1270 g/t Silver Intercept...

May 21, 2024

European Lithium Limited (ASX: EUR) – Trading Halt

February 10, 2024

Top S&P 500 stocks to watch: WMT, NVDA,...

February 23, 2025

4 Ways to Invest in Gold for Retirement...

August 6, 2024

Can Lloyds share price surge to 100p after...

May 1, 2025

USD/JPY forecast: signal as the Japanese yen crash...

October 28, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Why is Spain’s economy doing well?

      August 23, 2025
    • India proposes 3-year steel import tariff to counter China

      August 18, 2025
    • Soho House to go private in $2.7B deal led by MCR Hotels

      August 18, 2025
    • As Zelenskiy heads to face Trump, allies hold crisis talks over forced-deal fears

      August 17, 2025
    • US tariffs push India away from Russian oil, bolstering Iraq’s position in Asia

      August 10, 2025

    Categories

    • Business (3,751)
    • Investing (2,770)
    • Latest News (2,040)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved