Gold prices climb on Chinese buying. Is there more to come?
With gold at record highs, what’s driving the price and is there more to go? IGTV caught up with John Meyer from SP Angel who discusses the concerns that the Chinese authorities have about their economy.
This suggests that there is yet more upside to come as the Chinese state is buying gold to avoid reliance on the US dollar. Russia is also a big buyer of gold, but Meyer agrees that this is a bit of a sideshow compared to the Chinese position.
The discussion also covers the point that investors in gold companies are making with the relative underperformance of gold producers, John Meyer says that this gap will close when investors are happy that the rise in gold is here to stay. The conversation also looks at the price of copper, another China story according to Meyer who says that the Chinese state holds a similar view on copper that it does on gold, as a safe haven bet on the future.
(AI Video Summary)
China's gold demand and economic pressures
This IGTV interview conducted by Jeremy Naylor discusses the unprecedented rise in gold prices, driven primarily by central bank purchases as a hedge against currency uncertainties. John Meyer from SP Angel attributes the demand for gold to countries like China and Russia seeking alternatives to the US dollar.
Moreover, Meyer touches on China's economic challenges, especially in the property sector and potential devaluation pressures on its currency. They also explore the copper market, noting a supply-demand imbalance exacerbated by infrastructure demands and electric vehicle production. The conversation concludes with the impact of high interest rates on metal prices, anticipating that any reduction could influence future pricing.
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