Gold Price Revaluation Imminent Amid China's Gold Rush
The White House has sent signals that gold prices are due for a revaluation. According to Andrew Maguire, this is because of China's massive gold accumulation and the expansion of the Hong Kong SGE physical corridor.
Maguire notes that China purchased 20 tonnes of gold in July alone, with unreported flows indicating an even larger amount. This increased demand is driving a revaluation of gold prices.
The Fed finds itself caught between shrinking paper liquidity and rising physical demand for gold. Bessant's push for lower yields may be a policy error or a signal that gold revaluation is closer than markets think.
Global central bank holdings have overtaken US Treasury reserves, with gold becoming the world's top reserve asset. The trend suggests that investors are increasingly turning to gold as a safe-haven asset.