Aside from key demand drivers like central bank buying, he highlighted differing sentiment in the west and east.<\/p>\n
\u2018This 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\u2019s actually done a real shift in the overall sentiment amongst investors worldwide,\u2019 Cavatoni said. <\/p>\n
He went on to explain that western investors generally tend to pile into gold when the metal\u2019s price is high. Now, however, they\u2019re standing on the sidelines waiting for interest rates to start coming back down.<\/p>\n
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. <\/p>\n
Overall, he sees more room for gold to run after its record-setting moves earlier this year. <\/p>\n
\u201cThe 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\u2019s in the Americas or actually overseas in Asia. It\u2019s really something that we\u2019re keeping a close eye on,\u2019 he said. <\/p>\n
In closing, Cavatoni recommended keeping an eye out for black swan situations and the US election. <\/p>\n
\u2018I always remind people to never underestimate the risk of a systemic event, whether it\u2019s geopolitical or whatever the case may be \u2026 don\u2019t overlook the fact that there\u2019s a lot of pressure on financial institutions, banks, etc.,\u2019 he said. \u2018But what I\u2019d also add and make sure people pay close attention to is that there\u2019s an election year taking place in the US.\u2019 <\/p>\n
Watch the interview above for more from Cavatoni on gold demand, plus overall market trends. <\/p>\n
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n Aside from key demand drivers like central bank buying, he highlighted differing sentiment in the west and east. \u2018This 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 […]<\/p>\n","protected":false},"author":0,"featured_media":4086,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=4085"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/4086"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=4085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=4085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=4085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}