Connect with us

Hi, what are you looking for?

Investing

Joe Cavatoni: Gold’s Run Not Over, Eastern Markets Driving Price

Aside from key demand drivers like central bank buying, he highlighted differing sentiment in the west and east.

‘This is an interesting time. Right now the price has been impacted less so by the expectation of US rates and the US dollar, and more so by the geopolitical and overall outlook for investment in the Asian markets, the eastern markets. And that’s actually done a real shift in the overall sentiment amongst investors worldwide,’ Cavatoni said.

He went on to explain that western investors generally tend to pile into gold when the metal’s price is high. Now, however, they’re standing on the sidelines waiting for interest rates to start coming back down.

Conversely, eastern investors, who would normally rein in purchases when prices are higher, continue to buy. Cavatoni pointed to currency and property sector concerns in China as part of the reason this is happening.

Overall, he sees more room for gold to run after its record-setting moves earlier this year.

“The upside potential has been really exciting to watch, but definitely something that is giving us a signal that there might be more than just strategic investment at play. Likely some speculative investment playing out as well, whether that’s in the Americas or actually overseas in Asia. It’s really something that we’re keeping a close eye on,’ he said.

In closing, Cavatoni recommended keeping an eye out for black swan situations and the US election.

‘I always remind people to never underestimate the risk of a systemic event, whether it’s geopolitical or whatever the case may be … don’t overlook the fact that there’s a lot of pressure on financial institutions, banks, etc.,’ he said. ‘But what I’d also add and make sure people pay close attention to is that there’s an election year taking place in the US.’

Watch the interview above for more from Cavatoni on gold demand, plus overall market trends.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Stock

    In this edition of StockCharts TV‘s The Final Bar, Dave shows how breadth conditions have evolved so far in August, highlights the renewed strength in the...

    Stock

    Major equity indexes rose on Friday after a selloff that hit the Technology sector especially hard. But this doesn’t necessarily mean that everything is...

    Latest News

    Britain’s Prince and Princess of Wales have released a new photo of Prince Louis to mark his sixth birthday on Tuesday, the first image...

    Latest News

    President Joe Biden travels to Triangle, Virginia, Monday to mark Earth Day, where he’ll unveil $7 billion in grant funding for solar power under...

    Disclaimer: Dealwithbiz.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 © 2024 Dealwithbiz.com