Central Banks Secretly Buying Gold: $4,000 Target Imminent

Bullish

What Happened

China's central bank added about 23 tonnes of gold in September, the 23rd straight month of purchases, while Turkey also resumed buying in August and September. Meanwhile, long-term overseas yields surged, with the US 30-year Treasury yield hitting 5.7%, and French fiscal risks are mounting.

Bottom Line

Central bank gold buying and fiscal risks are creating a structural bull case for gold, with mining equities offering attractive risk-reward.

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