Yesterday's Surge in Gold By $100 /oz - Not Driven By China
It's The West
There is speculation that the drive higher in the gold price on April 16, 2025 was driven by Chinese buying.
The gold premium in Shanghai has not moved materially in recent days and this tells us that the price rise yesterday was a Western phenomenon.
Figure 1 - Shanghai Gold Premium vs. New York Cash Price; source: GoldChartRUs.com
We can see in Figure 2 that the spread in price between spot price and the active May 2025 futures contract on the CME/COMEX (NY) exchange is tightening indicating an acceleration in New York interest in physical gold.
Figure 2 - New York Active Futures Contract Minus Spot Gold Price; source: GoldChartRUs.com
We are seeing a Western driven surge in the cash price for gold.
Best regards,
David Jensen
I’ve read some suggestion that Western nations / central banks under
Mark Carney’s leadership began slowly unloading US Treasuries as a subtle response message to the threat of U.S. tariffs. If so, what else could they do with the proceeds, but buy gold?
Alasdair Macleod always said it would take time for them to understand what was happening.. He's never far wrong with his analysis 🤔