The price of gold is hitting record highs, and it’s all thanks to Russia and China, according to the Bank of France.
Russia and China’s Dollar-Dumping Spree
These two BRICS nations are leading the charge to move away from the US dollar, and they’re using gold as their weapon of choice. They’re buying up the precious metal to diversify their investments and hedge against the potential decline of the dollar.
Central Banks Are Buying Big
Central banks around the world are also getting in on the gold rush. In fact, their demand for gold has doubled in the last two years. This is partly due to the Fed’s aggressive interest rate hikes, which have made other investments riskier.
Retail Investors Join the Party
It’s not just governments and institutions that are buying gold. Retail investors in China and India are also piling into the market. They’re looking for a safe haven for their savings, especially with the Chinese property market and stock market struggling.
Gold’s Price Surge
The price of gold has soared by a whopping 66% since its 2022 low, reaching a record high of $2,685 per ounce this month. While it’s currently trading slightly lower at $2,658, the trend is clear: gold is hot.
