WGC Demand Analysis, GS on China, Consumer Credit, Moor Gold
Zen Moment: Tabby Panther
1- Market Rundown
Good Morning. The DX is down 8. Bonds are stronger with the front-end doing best. Stocks are slightly softer between 8 and 30 bps. Gold is down $12. Silver Fu. are down 33c. Copper is down 2% Bitcoin is down 30bps. Grains are down uniformly between 50 and 80 bps.
Comment: Stocks hold tentatively, Commodities sink as global recession and growing realization that the Fed may not pause, take hold. China’s much vaunted recovery misses high expectations (GS below) which explains the commodity selloff without US Stocks reciprocating today.
We just saw this from ANZ Bank…
Central bank purchases’ share of overall demand increased to 23% recently, compared to its 10-year average of 11%. Central banks bought nearly 1,078t of gold in 2022. That trend has continued this year, with 228t bought in Q1 − the biggest first-quarter purchase in history.1 Central bank purchases recently raised discussion about gold’s role in a broader move away from the USD as the main reserve/exchange currency – the so called ‘dedollarisation’.
But we do not believe strong central bank demand will threaten USD dominance. Gold makes up only 15% of the world’s foreign reserves whereas the USD is 58%. We discuss the factors driving official gold purchases below.
More Tomorrow
We also included the WGC report on Gold demand and an important technical Moor Note on Gold.
