Gold: HSBC Raises 2023 Price Forecast- Report
Buy Season Reports Start
Buy Season Update
As discussed many times over the years, Commodities investing (like Stocks) have a demand season tied to asset allocation recommendations coming out for the new year.
Wealth managers change percentages of allocations to asset classes ( stocks, commods, bonds etc) and specifics ( Gold, Coffee, TSLA, XOM etc) within those classes for various reasons tied to economic outlooks, Profits and losses, and changing demographics of their client base.
Which brings us to the title of this post.
Banks are now putting their recommendations out to their RIA and wealth manager clients. They all recommend buying some Gold this time of year. What is key is if they raise price targets from last year and/or raise allocation percentages to their manager clients. Next it is about how good of a trading desk they have and how much they already influence the market.
Here is the cover of HSBC’s buy season report. Happens every year. We will share more as they come in.
How big of an effect will these things have? Usually very pronounced for a period of time. But considering Gold has run up and those CTA shorts already covered, we wouldn’t get too enthused yet, especially with oil and stocks weaker into end of year.
Previously:
For Gold people its usually very easy to play this. We frequently rally after Thanksgiving into February. This year so far has been no different.