- The price of gold has hit new all-time highs, driven by strong demand from central banks, hedge funds, and ETFs.
- Silver is also seeing increased interest from investors, with a surge in managed money longs.
- Goldman Sachs remains bullish on gold, citing continued central bank buying, Fed rate cuts, and geopolitical risks.
Which brings us to this weekend, and yet another remarkable observation: while gold did correlate very closely with ETF holdings in the years prior to the Ukraine war (regime 1), since then gold has completely lost all correlation with ETF holdings, and instead has been correlating tightly with another data series: Managed Money (i.e., hedge fund) net futures (regime 2).
Chinese central bank – buying is the biggest driver behind gold’s doomed rally. Many central banks keep their purchases hidden from the public and disclose only what they want to disclose, especially in the case of the PBOC, here hedge funds – perhaps due to their ability to collect and trade on “non-public” central bank information – have become the barometer and real-time indicator of central bank purchasing. As such, spot gold prices are now directly correlating with net gold managed futures (Bloomberg ticker CFCDUMMN), as can be seen on the chart above.
ETF flows into gold are now turning positive, and when combined with continued central bank buying, combined with record Indian gold imports, combined with unprecedented demand for physical in the US, no wonder that gold is hitting new all time highs day after day. The suckers are in the market in mass
EVERYONE AND THEIR DOG IS BUYING gold1
Gold prices traded at fresh all-time highs closing AT A ALL TIME HIGH $3360/oz. Greed has taken over the gold fever stampede. The rally in gold seems unstoppable at this point and resets on the all-time-high are becoming a frequent occurrence as is the norm at insane rally tops.
Gold jumps 3%, hits new all-time high of $3,328
The price of gold continued to go upward on Wednesday, reaching a new record high of $3,328 per ounce as trade tensions pushed investors towards the safe-haven asset. The United States earlier announced that tariffs on Chinese products could reach 245% due to its retaliatory measures. Meanwhile, China slammed Washington’s comments, stressing that Beijing imposed countermeasures to protect its “legitimate rights and interests.” Gold surged 3.06% at 12:03 pm ET, going for $3,328.45 per ounce. At the same time, silver climbed by 1.87% to $32.92 per ounce. Platinum gained 0.85% to go for $970.07 per ounce, and palladium advanced by 0.19%, selling at $960.74 per ounce.