Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
The Chinese mining sector is currently producing 340 tonnes of gold a year and rising. No doubt there is every encouragement from the State for this figure to rise. We believe that no matter how high it rises, little if any of that supply will reach the world’s ‘open’ market in London.
Even global gold production is not likely to rise significantly from the current level of around 2,500 tonnes. Therein lies a development that, in itself, will change global gold market dynamics.
