So it looks like we have a little bit of Mystery affecting the price of gold now Kind of thought that it was mysterious Enough but we might need to throw out Our charts and get back to the basics And just ask the magic eight ball what's Coming [Music] Throw a stick in the street and you will Hit a market analyst calling for higher Gold prices in 2023 and that's the Analysis that I actually think makes the Most sense personally but there's this One bit of information that's curious if Nothing else and it's the mystery buyer In the gold market the price of gold has Been climbing over the last three weeks When macroeconomic factors make it look Like it really shouldn't be doing much Of anything and if you were to go back Further than that the current 50-day run Is Gold's best price move since the run In 2020 that sent gold to its all-time High but there's not really anything Pushing it to do that so who's doing the Buying and what happens if it stops From what we can see the mystery buyer It's probably China other central banks Probably getting in on this as well but China is going to be the standout and if It doesn't make sense to you that Central banks would be buying gold as It's getting more and more expensive It's worth mentioning here that the
Price run that we're seeing in U.S Dollars it's not necessarily matched in Other currencies strength of the US Dollar has been slipping the last few Weeks in particular and that means that The price of gold might actually be Cheaper in other currencies Now what we do know here is that in December China reported buying 30 tons Of gold they reported 32 tons in November but there are speculations that China and Russia have been buying Massive amounts of gold for a while now And simply not reporting it prior to November China hasn't reported its Purchases since 2019. now the reason any Of this is relevant is that if the extra Buying were to suddenly stop then we'd Likely be looking at some kind of Correction in price that's if nothing Else happens at the same time and as Someone who buys regularly I guess it's Hard to see that as anything but good But the price swings in gold price I Would have said they're already Mysterious enough it's just strange to Think that there's a mysterious Force Outside of typical fundamentals that Could suddenly alter the price of gold And actually well Has probably always been the case Mystery buyers aside for a minute the Fact that gold prices have been heading Up despite the U.S dollar gains
Throughout 2022 is a pretty strong Indication of a good year ahead as the Rate increases cool off dollar starts to Lose speed Well we'd expect to see Higher prices but that's not what was Happening in 2022. I've seen articles Noting the mystery buying could be Adding as much as a hundred and fifty Dollars an ounce to the price of gold But then they go on later to lay out a Case for new highs in 2023 even with the Possibility out there that the buy-in Could drop off So what I hear in all of this is that 2023 should be a big year for gold if we See a pivot from the FED it could be a Really big gear but we could also see Volatility that just doesn't really Follow macro Trends doesn't really care What else is happening I guess that Means that maybe we get a surprise sale Here or there I'm always open to that Regardless of what it may or may not be Doing at the price of gold central banks Buying gold on the books off the books That still tells us something about the Ongoing importance of the metal it maybe Even reminds us about the possibility of International trade options outside of The Petro dollar now Canada they don't Seem to be in on this trend of buying Gold they're still at zero for National Reserves but other central banks they Bought nearly 400 tons of gold in the
Third quarter of 2022. I think I've Mentioned that before that's a 300 Percent jump over the prior year and as Of the most recent reporting it's the Highest annual total since 1967 and That's a year when the US dollar was Still technically backed by gold again That's just what we know about If we focus on what we do know about What we can plan around maybe today's Inflation news is a story that's going To pick up through the year if we go Back to 2022 the news was about record Inflation numbers that we hadn't seen Since 1981 well 2023 is going to be Different year-over-year numbers they're Going to drop so then it'll be a Question of just how optimistic Traders Want to be about falling numbers they Might want to spin it The Pedestrian View on this whole thing is that lower Inflation means less guidance from the FED eventually that means lower rates it Also means lower treasury yields and That means a weaker dollar that's the Normal stuff some of that we can plan on Some of it we'll know what to expect if It hits but all of that makes sense the Normal stuff that probably means higher Gold prices it might even seem like That's what's happening right now since We've already been hearing about 2023 Trending up for gold but none of that Has actually hit yet it wasn't really
Expected until this second half of the Year 2023 gold predictions they counted on The dollar cooling off they did not Count on things like possible increased Conflict in Eastern Europe like a Possible Saudi trade deal with brics Nations and they really don't account For any other surprise event big or Small with global implications so lots Could happen and if you're a little bit Bored with price action for gold and Silver lately or maybe you've just Gotten really comfortable seeing a trade Within a five percent trading ban well 2023 could have a few surprises And this is why I'm not even throwing a Guess out there for gold price by the End of the year I think it'll go up but That's about as specific as I'm willing To go personally now we might think that We know what easing inflation numbers Will do to the price of gold maybe what Rate hikes or lack thereof would do we Might even think that we know what would Happen if we saw any of those things That I just mentioned issues with global Trade for their armed conflict whatever But this other thing the massive Unreported purchases that throws some Mystery into the mix and I'm not able to Guess what China or Russia are up to on The gold front I just think it's safe to Say that this does not look anything
Like 2022. we could see some crazy moves So what do you think are you expecting Crazy you think I'm crazy let us know in The comments and while you're there be Sure to hit that like button if you Found any of this interesting be sure You're subscribed with notifications Turned on if you want to see more on the Topic and if you're still here thanks Again for watching I always appreciate Your time Take care Foreign
