What Is Going On With the Price of Gold?

By: Anneken Tappe · April 11, 2024 · Reading Time: 2 minutes

High Demand

The price of gold has soared in recent weeks to repeatedly record highs. There are a few factors behind this rally, including increased demand from central banks around the world.

Gold tends to get a lot of attention during times of volatility, be it in the markets or geopolitically. With ongoing conflicts in the Middle East and Eastern Europe, that’s shining a light on gold. The shiny metal is also often viewed as a potential hedge against inflation. Some may refer to gold as a “store of value” in this scenario.

Central Bank Demand

Since the start of April, the spot price for gold has surged from $2,264 per oz to an all-time high of just over $2,360.

Central banks around the world have been stocking up on gold too, including China, Singapore, Turkey, India, and many Eastern European countries are buying more of the precious metal. China has been buying more gold for 17 straight months.

Economists view this global pivot toward gold as a sign of de-dollarization. In other words, rather than holding U.S. dollars, central banks may want to diversify their holdings and add more gold to the mix.

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