IAUM - World Central Bank Demand For Gold Pushes Metal To New Highs
2024-06-25 09:05:41 ET
Summary
- World Central Banks have significantly increased gold purchases since 2022, with over 1,000 metric tons acquired annually, driving spot prices to all-time highs.
- BRICS countries, particularly China, have been leading the surge in gold acquisitions, financing purchases by selling US Treasury Bonds.
- Central banks are expected to continue increasing gold holdings, creating a divergence between spot price and fair value, with gold currently overvalued by 28%.
The Central Banks of the world have altered their behavior over the past few years, and have stepped up their purchases of gold.
In 2022 and 2023 World Central Banks purchased more than 1000 metric tons of gold each year, double their average annual acquisitions over the previous ten years....
World Central Bank Demand For Gold Pushes Metal To New Highs