Gold hit record high 2'135.39/oz in early trading hours
Gold surged to a new all-time high as growing expectations for US rate cuts early next year. This latest leg of gold's rally has been turbocharged by comments on Friday from Fed Chair Jerome Powell. Precious metal's strength has been underpinned buy other factors as purchases by governments and central banks as well as geopolitical uncertainty.
Is massive buying by China the main reason for the current gold rally?
Gold trading above $2,000 despite real fund rates above 2% and the strong dollar is one of the main surprises of 2023. One theory is that China's "Massive Accumulation Of Gold" is behind Gold resilience this year. Indeed, according to unofficial tallies - such as that kept by Gainesville Coins analyst Jan Nieuwenhuijs - total gold purchases by the Chinese central bank (reported and unreported) are significantly bigger than what has been officially disclosed, and in Q3 alone, China purchased 179 tonnes of physical; year-to-date the PBoC bought 593 tonnes, which is 80% more than what it bought in the first three quarters last year. As such, China's total estimated gold holdings are 5,220 tonnes, more than twice what’s officially disclosed at 2,192 tonnes... Source: www.zerohedge.com
Up again today. Index is up 8%. This group of Chinese stocks is up over 50% in just a few weeks
Source: David Ingles, Bloomberg
The stock market isn't the economy...The Chinese version...
Source: GS, TME
A gauge of early-stage small, mid-cap growth stocks in China has rallied 40% within just a few weeks
Source: David Ingles, Bloomberg
ALERT: US imports from Mexico have just surpassed those from China This has happened for the first time since in 2 decades
Source: Games of Trades
Nvidia indicated that the latest round of China restrictions will not have a meaningful impact on its business
It’s possible that this is because China frontloaded its GPU orders earlier this year in anticipation of these restrictions. It’s also possible that any lost revenue from China will be made up for by tremendous revenue growth in developed markets. Guidance for the January quarter might be indicative here. Source: Morningstar
[Tweet by Bob Eliott] china faces the most classic dilemma in macro with an economy that is too weak and in need of additional easing and at the same time a desire for exchange rate stability
After months of keeping money too tight to stabilize the FX, at the first sign of FX strength they eased... Source chart: The Daily Shot
![[Tweet by Bob Eliott] china faces the most classic dilemma in macro with an economy that is too weak and in need of additional easing and at the same time a desire for exchange rate stability](https://blog.syzgroup.com/hubfs/1700087239074.jpg)