Srinivasan Rathinam’s Post

One can do a lot worse than investing like the Chinese. Although FX Reserve management is a completely different game altogether compared to building up their oil and copper reserves, they've had a great record in timing their purchases. China's Gold FX reserves have more than doubled to over 4% today. Since 2018 till today, Gold returned around 78%. The S&P500 in comparison returned around 98%. On a risk-adjusted basis Gold was the better option and has more than compensated for mere inflation. If Investors start to believe in holding Gold within 2-3% of their portfolio, it will have a profound impact on Gold prices, ultimately supporting savers and will extend gold returns over the long run. *Historical results aren't indicative of future returns. #gold #fxreserves Source: Refinitiv

First post 🥸 — some babblings about GOLD • Gold price started a long-term bull market trend since late 2022. • Some Fundamentals behind the scene : - since 2022, China started selling US treasury bonds gradually, with the holdings dropping from $1 trillion to the current circa $800 billion. - At that same time, China started a gradual purchase of Gold to diversify the foreign reserve holding risks. - Followed by some countries, institutional investors such as Ray Dalio and retail investors such as you and me. • Geopolitical conflict factors, nonstopping depreciation of Fiat currency, the potential concern of the sovereign debt crisis (by Dr Doom Roubini ) Will these substantiate the long-term bull market of Gold ? Say within the following 2-3 years? 🧐🧐 #gold #economy

Gold price is making another attempt to reclaim $2,400, benefiting from market caution, China's economic worries, and upcoming US earnings reports. Support is strong as long as the 14-day RSI remains above 50, currently at 53.50. A bullish outlook is justified by the 21-day and 50-day SMA Bull Cross. If the rebound strengthens, resistance levels at $2,425 and $2,450 will be tested, with a new all-time high of $2,484 as the target. If sellers return, support levels are at $2,379 (21-day SMA), $2,361 (50-day SMA), and the psychological level of $2,350. #PMFinancials #ParkMoney #TechnicalAnalysis #Gold #XAUUSD #Trading #Investment #finance #money #forex #price #business #currency #globaltrade

Is China's Gold Buying Spree Over? 🧐 China, the world's top official sector buyer of gold, has slowed its gold purchases in May 2024, causing a significant drop in global spot prices. After peaking at $2,449.89 per ounce in May, spot gold prices have dropped to around $2,300 per ounce. The People's Bank of China (PBOC) has paused its 18-month buying streak, waiting for prices to cool down. What does this mean for investors? Gold has long been a hedge against geopolitical and economic risks, and with central banks planning to increase gold exposure over the next 12-24 months, this could be a strategic buying opportunity. Investors should keep an eye on gold price trends and consider diversifying their portfolios with gold ETFs, which have reached record-high assets under management in China. A well-timed entry could capitalize on future price rebounds. What’s your take on China’s gold strategy? How are you planning to adjust your investments? Share your thoughts below! #GoldInvesting #ChinaEconomy #InvestmentStrategy

📈 Gold Prices Soar! 🇨🇳 Discover how China's strategic buying has fueled a remarkable rally, pushing gold prices to record highs. Our latest blog explores the implications for investors and the global economy. 🔖 Read more to understand the factors driving this surge and how you can capitalize on the opportunity: 👉 https://bit.ly/47EaJro 👈 #Gold #Investing #China #Economy #GMRGold #WealthManagement #PreciousMetals

Is the sudden surge in Gold prices sustainable or just speculation? 📈💰 There are multiple reasons behind the sudden rise in Gold prices in the previous period. But, Gold prices are being majorly driven by a few reasons. Let’s unfold them! 🧐 1. Demystifying Chinese gold trading activities 🇨🇳 China has been buying yellow stone as if there is no tomorrow. Beijing’s precious metal acquisition drive has been immense in recent times. The country’s influence has considerably increased in the Gold market during the past period. Beijing has swiftly increased Gold reserves recently to diversify its reserves and reduce dependency on the US Dollar, considered the most important and strong currency to hold in foreign reserves. This is a result of de-dollarization efforts as discussed during the BRICS 15th Summit in August 2023 in South Africa. Also, earlier, China used to buy Gold domestically while increasing its holdings. However, in recent buys, the Central bank is using foreign currencies to reduce its exposure against the USD & other currencies. 2. Interest Rates 💼 The Federal Bank, on May 01, 2024, in its meeting, is not in view of reducing interest rates in the near short term as the inflation targets have not yet been met. This has led to a rise in investment in Gold instead of Bonds as the return in Gold seems to be much higher than the fixed income in Bonds. 3. Geopolitical conflicts/tensions 🌍 The geopolitical conflict between Russia-Ukraine had a long-term impact on foreign exchange reserves of Russia as a result of sanctions imposed by the West. Also, the recent conflict between Israel-Iran/Israel-Hamas has also led to a surge in Gold prices because of increased fear of war which caused investors to flock to Gold because of safe-haven appeal. 4. Other factors 🤔 The recent surge in the capital markets across the globe has caused caution in the mind of long-term investors which may result in an increase in shifting from capital markets to real money, i.e. Gold. Also, speculative traders are still of the view that there is some room left for further rise in Gold prices. Gold investments have also surged as a result of the failure of traditional investments like Real estate in meeting the expected returns in various countries. #gold #linkedinlearning #finance #ey #china #icai #ca #globalmarkets #currentaffairs

Official gold reserves in China rose 12t in February, the 16th consecutive monthly increase according to IMF data; gold now accounts for 4.3% of the country’s total FX reserves. Gold ETFs also saw continued monthly inflows (+US$109mn), pushing their collective AUM to a new record high of US$4.3bn. In the near term, the recent gold price rally and a seasonally weak period may affect local jewelry demand but could lure momentum-seeking investors. For the full story on recent developments in the Chinese #gold market, check out our recent blog from Ray Jia, FRM and World Gold Council: https://lnkd.in/d9E3bE35 #china #gold #pboc

💸Gold on Fire: Hitting ₹74,000 and Why It's Rising!???💸 Gold prices have been on a tear lately, reaching a scorching ₹74,000 and delivering a sizzling 13% return - that's a jump from the previous 9%! But what's behind this hot streak? Let's break it down!!! 1. China's Wobbles Spark Safe Haven Rush Imagine this: China's stock market is taking a tumble, and their currency is weakening. Yikes! Investors spooked by this get nervous and seek shelter in safe havens like gold. Gold's reputation as a reliable store of value makes it shine during shaky times. 2. US Interest Rate Cuts? Gold Gets More Attractive The buzz is that the US Federal Reserve might lower interest rates. This can make gold more appealing compared to other investments like bonds that typically pay interest. Why? Because when interest rates are low, the potential returns from those bonds become less exciting, making gold's zero-interest offering seem less like a sacrifice. So, is this the new normal? What do you think? Will gold prices continue to climb? Share your thoughts in the comments! #Gold #Investment #MarketTrends

“2020 onwards .. YUAN trade and settlement backed by Gold Agreements and Listed Gold Bonds - Who was Buying Gold and taking deliveries in US on comex since 2020 Private Family Offices. Why Gold is expected to increase very fast in next 3 years ... Almost 3000USD and then settling at 3500USD /tozby 2027-28" https://lnkd.in/gJhiu4XR "Gold if crosses 63000 will cross 65000" https://lnkd.in/gBWjiDFz "Gold - Crossed and stayed at 60K+ , as analysed much in advance - refer previous blogs. Though it is a bit down to 58-59K levels, but has the under current and need for Gold. One as a future change in currency basket and petrodollar’s with Dollar Index to fall in may be 3~10 years, European decoupling with US. Present minor correction can last for 6-15 months and can be 55-62 K. Correction is on account of reduced buying by China and Russia and selling by few smaller countries, reduced working capital in extraction of gold." https://lnkd.in/gwv3sqDP.

Market Outlook 21/2/24 💡 XAUUSD, H4: Chart Analysis Gold prices were traded lower after being rejected from 2030, signalling possible end to upside bias for the time being. MACD shows diminished upside momentum, increasing the biasness towards the downside for short-term. The commodity entered into a reversal as US dollar firms up following further rate cuts from People's Bank of China. Focus price level: Resistance: 2030 2041 Support: 2022, 2014 #XAUUSD #Gold #Trading #TechnicalAnalysis #UltimaMarkets