Weekly GoldFix: Goldman's Report is Probably Why Gold Went Ballistic Friday
“We are bullish Gold in 2023”
“We are bullish Gold in 2023” is how Goldman’s most recent, 2nd most-clear gold trade desk idea opened on January 4th.
We say second because the most clear idea was on November 14th which we discussed in a Founders Podcast entitled Buy Season Preview: Goldman’s Latest on Gold and what it meant then. We strongly recommend listening to that later if your interest is in seeing this report in context
Today we aim to go through their latest report in detail.
How We Got Here and Where We’re Going
The institutional report starts by laying out recent and expected future drivers of precious metals on both the buy and sell side of the table.
Throughout 2022 we saw ETFs selling gold and Asian physical demand from either central banks or retail soaking it up
Note: We do not think they mean retail futures people soaking it up. They mean retail physical investors. The impact of retail Stackers on the market is no joke.
WESTERN SELLING, WHY?
That’s pretty clear and needs little elaboration except to answer the question Why did ETFs sell? That answer from us is: The West has been a seller of Gold and Silver in ETF form ever since they sought to hedge exposure from rate hike regime implementation for inflation control starting back in April. The evidence of this has been well documented in this space. Deflation of (precious) stock valuations has translated into selling of Precious Metals1.
