BEN DAVIES: Asia's Hunger For Treasuries Is Turning Into A Hunger For Gold

ben davies

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.

Don’t Miss: The Truth About Gold >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.