Putting this another way, if all the sales from the CBT have been to fulfill demand for gold domestically, then retail investment demand for #gold has exploded in Turkey.
Here is quarterly #gold bar and coin demand from our #GDT data series.
Q1-2023 saw strong demand of about 50t...
The implication is that in April alone 80t of #gold was bought in Turkey.
Turkish investors have turned to #gold to protect then from high inflation and the prospect of currency depreciation.
I think this doesn't change the narrative about the huge increase in central bank #gold demand over the past nine months, as Turkey is a fairly idiosyncratic case.
Yes, other central banks may be forced to sell some gold due to economic circumstances. But more are buying.
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I'll tweet out some of the highlights from the report for those too lazy to download it.
Above: total stock of #gold above ground is about 209,000t.
Below, the value of this stock.
Note that there are substantial quantities of OTC #gold derivative positions that are not included in this total as this information is not readily or reliably available.
We've (obviously) noticed the divergence between #gold and the TIPS yield as its been going on for a while.
I beleive that this relationship, which has worked very well since the run-up to the GFC may have fundamentally changed...
It's hard to be sure but the dollar did open a little firmer than Friday's close.
Could the sell-off have been a 'fat finger' or something malicious? Either are possible.
But its also possible that #gold slipped lower as the dollar firmed, triggering stop-loss selling, which caused gold to slip lower, triggering more stops until the selling was exhaused.
Gold hit a new all-time high this morning, posting $1944.71/oz during late Asian trading and is currently near that level.
There has been a LOT of coverage of the all-time-high on social media – who knew there were so many #gold experts?😃😃
It’s great timing as far as we are concerned, as it means that #gold is getting a lot of attention ahead of the launch of our Q2-2020 / H1-2020 #GoldDemandTrends release, which will come out on Thursday.
What can we say about #gold at the moment? Obviously I am not going to front run the release of GDT, but we can repeat themes we’ve been making for some time.