IDR - 4 Stocks to Keep an Eye on as the Yellow Metal Glitters | Benzinga
Gold prices have been on a tear lately, hitting a slew of record highs in the past two months. Gold prices climbed more than 20% since October. The yellow metal increased 4% last week and notched a third successive weekly gain.
U.S. gold futures gained 1.7% to $2,347.30 per ounce in the last trading session despite a solid uptick in nonfarm payrolls in March. So, what's behind gold prices shattering record highs? China's move to unremittingly add gold holdings, the Federal Reserve's dovish stance, and sticky inflation are helping gold prices scale northward.
The People's Bank of China purchased gold for the 17th consecutive month in March and extended its precious metal buying spree. China's gold reserves soared to 72.74 million ounces last month.
China increased its gold reserves since the bullion metal is considered usually a safe-haven asset that provides financial security amid uncertainty in the global markets. After all, Chinese legislators have noticed how the Western governments confiscated Russia's reserves following their invasion of Ukraine.
What's more, trade conflicts with the United States and geopolitical upheavals around Taiwan would compel China to keep acquiring gold. China, at present, has the wherewithal to buy ...