If you're a gold trade, there is an article out today that highlights some very important points. It cites a handful of different analysts but the main point is that no one knows how much gold central banks are buying because any reporting on it is voluntary and they don't want to be front run.
- China is reporting about 2 tonnes per month of buying but Soc Gen says purchases could be 250 tonnes this year
- Unlike oil, where you can track it with satellites, with gold you can’t
- People are trying to spot patterns in orders for 400oz gold bars
- Chinese reserves could be double what's reported
- Only about one-third of official buying was publicly reported, according to the World Gold Council
The bottom line here is that we're flying blind but someone has been buying a lot of gold this year and it's a good bet it's the country that Trump is targeting on trade.
