Connect with us

Hi, what are you looking for?

Trading Tips

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
Enter your email address below and we’ll send you our best practices.

    You can unsubscribe at any time. Redstatefoundation respects your privacy and strives to be transparent about our data collection practices. Please read our Privacy Policy and Terms of Use.

    You May Also Like

    Trading Secrets

    What is the marginal rate of substitution and its formula? Key Takeaways: Trade-offs and Satisfaction: MRS shows the trade-offs consumers are willing to make...

    Trading Life

    Laura Wong Hon Chan is an interest rate options trader, who is currently a director at Bank of America Merrill Lynch in New York....

    Trading Secrets

    In this episode of StockCharts TV‘s The MEM Edge, Mary Ellen reviews what’s driving the markets higher and what to be on the lookout...

    Trading Secrets

    SPX Monitoring Purposes: Long SPX on 10/10/22 at 3612.39; sold 12/13/22 at 3669.91 = gain 1.59%. Monitoring Purposes GOLD: Long GDX on 10/9/20 at...