In a piece for King World News, Ben Davies, the CEO of Hinde Capital, said that Asia is a massive buyer of gold and has been stepping up their buy order.
Asia has long been a buyer of US 10 year bonds, a historical pattern which he compares to the new surge from Asia in gold.
“With 10 year yields at 1.68% and having topped out in our opinion, we do see a cessation of Asian bond buying and a switch to gold and other currencies by our Asian counterparts. It is the end of the vendor-financing relationship.”
Davies states that evidence points to an upside break for both gold and silver, though he is hesitent to state which way he expects the commodities to break. Either way, Davies expects a huge move for gold in the near future.
The Precious metals market is trend ready. Gold, on our short and long-term trend indices, is primed for a substantial move. This could be up or down.
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