Central Banks are likely to continue buying gold for several reasons. Economic uncertainty, fueled by geopolitical tensions and trade disputes, motivates them to acquire gold as a safe-haven asset. Current New Geopolitical concern in the middle east between Palestine and Israel provides parking of major funds in Gold. Inflation concerns drive gold purchases as a hedge against currency devaluation. As Inflation has a perfect textbook hedge with Gold thus Gold till the time inflation is high Gold cannot see downturn. Diversification of reserve assets, especially to reduce risk from interest rate movements, remains a key consideration as interest rates remain high and rate sensitive sector failure can add economic concerns. Moreover, Central Banks may increase gold holdings if they anticipate accommodative global monetary policy or a pause in interest rate hikes as the dollar will weaken when global interest rates fall. Gold will remain a good buying bet by banks in such uncertain global outlook


 

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