[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( Last week, we warned investors that goldâs selloff was an overreaction to misunderstood fundamental news. Blackbox (algorithmic trading) gold traders, who have been relying on Chinese central bank buying, were spooked when data from[the Peopleâs Bank of China showed that it didnât increase its reserves last month, ending an 18-month shopping spree.]( Gold managed to hold critical support at $2,300 on Monday and is seeing a 1% gain on the week heading into the weekend. [Given all the geopolitical uncertainty around the world, it is ludicrous to think that China is done buying gold.]( [This week, I attended the 30th annual Montreal Conference of the International Economic Forum of the Americas]( which helped me better understand the growing trend of deglobalization. âItâs extraordinary to me to see how rapidly we've moved from a situation where globalization seemed inevitable to where today it increasingly seems impossible,â said Perrin Beatty, a former Progressive Conservative Cabinet Minister and President and CEO of the Canadian Chamber of Commerce, during a panel discussion. While the U.S. dollar is expected to remain the worldâs reserve currency, it will face growing competition. Analysts constantly reiterate that gold will play a growing role in a multipolar currency world because it remains one of the most liquid monetary assets in global financial markets. We can already see the U.S. dollarâs diminished role on the world stage. [This week, the trade agreement between the U.S. and Saudi Arabia, which established the petrodollar, was allowed to expire.]( For the past 50 years, the U.S. dollar has dominated global trade as the two nations agreed to price oil in U.S. dollars. This agreement cemented the dollar as the worldâs reserve currency and ushered in an era of prosperity for
Americans; in exchange, the U.S. provided military support and protection to the kingdom. Saudi Arabiaâs moves to expand beyond the USD come as it enters a new trading bloc with expanded BRICS nations: Brazil, Russia, India, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. During the Montreal conference, Ali Borhani, Managing Director of 3Sixty Strategic Advisors Ltd and co-founder and host of the BRI Dialogues, put the expanded trading bloc into perspective and noted that people have to recognize that the world has changed. âHalf of the world population is in BRICS+. Two-thirds of world trade happens in BRICS+. BRICS are adding 74 million consumers a year. That is two times Canada out of these markets,â Borhani said during the panel discussion.
âThe largest buyers of energy and the largest sellers of energy happen to be in the Global South and among BRICS. So we're looking at the rewiring of energy, finance, supply chain, and tech.â Because of these broad-reaching geopolitical shifts, it is fairly easy to make a simple case for gold as a global currency. Many analysts have noted that gold remains the best neutral asset to settle trade imbalances. So it's not just China that is going to have to buy more gold; nations around the world, especially those in emerging markets that have relied so heavily on the U.S. dollar, will have to rebuild their gold reserves. That is it for this week. Have a great weekend. Neils C. Editor's picks [State Streetâs Milling-Stanley upgrades gold forecast, sees prices trading between $2,200 and $2,500 in H2 2024]( Streetâs Milling-Stanley upgrades gold forecast, sees prices trading between $2,200 and $2,500 in H2 2024]( [When Fed Pivots, Markets to See 'Dramatic' Drop, Here's Why & What's Next For Gold, Bitcoin: Soloway]( Fed Pivots, Markets to See 'Dramatic' Drop, Here's Why & What's Next For Gold, Bitcoin: Soloway]( [Government Spending and Fed Policy: âAn Unsustainable Pathâ - David Nelson]( Spending and Fed Policy: âAn Unsustainable Pathâ - David Nelson]( [Bitcoin Will Be Shadow Central Bank: When Fiat Fails, It'll Be Overnight â Bill Barhydt]( Will Be Shadow Central Bank: When Fiat Fails, It'll Be Overnight â Bill Barhydt]( [Kitco News]( [Saudi Arabia ends petrodollar agreement: What it means for the USD, Bitcoin, and gold]( [World Gold Council, Singapore Bullion Market Association looking to create an Asian gold hub]( [Russiaâs central bank ends trading in USD, euros, adopts Chinaâs yuan as its official benchmark currency]( [Gold vs. Bitcoin: which wins the inflation hedge race?]( [Silver prices stabilize above $29/oz, but downside target of $24.66/oz is in play â FX Empireâs Hyerczyk]( [Fed may cut later than ECB, BoC, but cut they shall, and gold will soar â David Rosenberg]( [Stronger USD and weaker Chinese demand drag gold, but rally to resume in Q4 â INGâs Manthey]( [Geopolitical uncertainty is impacting the global economy and driving gold demand]( [A peak in global rates is good for gold BoC and ECB can continue to lower interest rates without the Fed]( [Forget the Fedâs monetary policy, safe-haven demand to define gold prices - BNP Paribasâ Fabien Benchetrit]( [Physical gold ETFs see first net inflows in 12 months in May - World Gold Council]( [Bitcoin adoption rises as hedge funds and family offices increase allocations]( [THE Mining Investment Event]( [Gold looks good again next week as both Wall Street and Main Street turn bullish]( [Gold Live App]( [Kitco Mining]( [Proposed capital gains tax to have 'devastating impact' on resource sector - CSE's Richard Carleton]( capital gains tax to have 'devastating impact' on resource sector - CSE's Richard Carleton]( [Hey, miners, hold some gold - Frank Holmes on lessons from Bitcoin companies]( [One of the largest gold discoveries in three decades - Tudor Gold's Ken Konkin advances Treaty]( ['Crypto is eating junior resources' lunch' - Peter Grandich on how mining lost ground to Bitcoin]( [Kitco Gold Chart]( [Kitco Gold Chart]( Technically Speaking Jim Wyckoff Market Analyst and Columnist
jwyckoff@kitco.com [Good price gains for gold as U.S. bond yields dip]( Promotion [Father's Day]( This message was intended for {EMAIL} , as a subscriber and/or customer of Kitco.
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