Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

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

by May 7, 2024
May 7, 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
Dog-Leg Delivers Further High-Grade Intersections Resource Extension Drilling Results Ewoyaa Lithium Project, Ghana, West Africa

Related Posts

Greenlane Renewables Announces $35.3 Million System Supply Contract...

October 10, 2023

When and How to Take a Long Position...

September 15, 2023

Top 7 Lithium Stocks of 2023

October 17, 2023

Quimbaya Gold

July 6, 2023

Robotics Market Forecast: Top Trends That Will Affect...

January 9, 2024

Danielle DiMartino Booth: US Economy at Precipice —...

March 28, 2025

Investor Presentation via Investor Meet Company

May 15, 2024

Uranium Stocks Sink as DeepSeek Sparks AI Data...

January 30, 2025

3 Top Weekly TSXV Stocks: Power Nickel Leads...

May 13, 2024

Brunswick Exploration Drills 1.80% Li2O Over 37.2 Meters...

January 19, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


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

    Latest

    • Fed Watch: Key Bullish Patterns in the S&P 500, Utilities, and Crypto

    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

    • Brunswick Exploration Announces Brokered Private Placement for Gross Proceeds of up to C$2.5 Million, with a Lead Order from a Strategic Investor

    • Drill Contract Awarded for Elizabeth Hill. Technical Visit Completed to Define Drill Targets

    • $2.6M Placement and SPP to fast-track China entry and sales

    • NorthStar Gaming Announces Receipt of Management Cease Trade Order

    Categories

    • Business (1,183)
    • Investing (2,407)
    • Politics (3,699)
    • Stocks (1,553)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.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 moneycontrolplace.com | All Rights Reserved