BofA's Michael Widmer: Most central banks aim to increase gold holdings

The 30% upside from current levels, how does the central bank play a role in pushing gold prices that much higher? Yeah, one of the market participants. I think that's the thing key buyers already doing the past they're doing the past few years have really been the bedrock of support to the to the gold market. We had a central bank survey coming out just recently from the Bird Gold Council, this organization that goes around as the central banks what they're intending to do this the gold holdings. And the message was relatively clear. The majority of central banks does want to keep increasing their gold holdings so that that buying that has already supported is unlikely to go away. Is there a correlation between that buying and the fiscal spending that we're seeing in terms of the US Treasury market in particular and the fragility there? That's an interesting one. I think. So clearly when you're looking at the US dollar share in foreign exchange reserves that has well in a lot of countries come down quite steadily even in even in China. And then by by definition central banks can't really diversify. An awful lot of assets of gold has actually been one of the beneficiaries of that. When you're looking at the motives on why central banks buy gold, there clearly is a correlation, but it's actually a whole range of motives that central banks follows performance in in, in in a time of crisis. This concerns for instance, now about the health of the Treasury market certainly plays into that. Can you talk a bit about the drawdown from copper's highs and to what degree China stockpiling has had had a role to play in that? It matters. I think we've had a repeat of last year and the year before market rate market straight higher irrespective of our physical demand is and the markets wait for that physical demand to catch up again. It didn't catch up this time around. The the physical market in China remains still quite soft. And so we've given back some of those gains. And I think looking through the summer, it may be a little bit of the same relatively boring copper market. I think you really need to see a pick up in demand in China, a broader for the rebound of the economy, for copper prices to to move higher. But the men are not bad. Fundamentals are actually good when you're looking at the supply side. Supply side remains as high as it was in the 1st and the second quarter. We just need a little bit more demand. What about the overall investment demand for metals right now? Are you seeing a pick up there that also helps support that gold to 3000 thesis? Yeah, that's it's a bit patchy still. I think that's one of the issues that we've had. So talking about central banks being a bedrock, that's certainly true. We've seen retail buying from China being helping as well. But the Western investors I think have been still on the sidelines. And when we talk to wealth managers, for instance, retail investors, we do realize that a lot of people are still waiting for that Fed rate. And I think that needs to come. Then you potentially get another round of buying that would then along the central bank purchases help gold prices move higher. Right now we don't have those purchases and that's why I think similar to liberty to my comments on the copper market will be range bound here really. Finally, I wonder if you can give us a read on sort of client inquiry levels here and how much is incoming right now regarding, regarding metals? Look, it has been relentless the second quarter doing those going up to those highs. Honestly, I think that was probably the busiest period I've had since the Chinese LED bull market 20 years ago. Shows my shows my age a little bit, shows my age a little bit as well. But no, I think it has granted been a little bit more more subdued. I think people are still happy to hold on to the positions. We've seen some longer equations. But really I would say the market is now waiting for the next leg, higher and stronger, stronger physical demand to come through.