Gold Reaches All-Time High Amid Rising Central Bank Demand
Gold has surged to a historic high of $2,902 per ounce, up 17.5% year-to-date, driven by record-breaking central bank purchases and investor concerns over global trade policies. The World Gold Council reports that 694 tons of gold were added to central bank reserves in the first ten months of 2024, reflecting a broader trend of de-dollarization and economic hedging. Leading buyers include Poland (89.5 tons), India (72.6 tons), Turkey (74.8 tons), and China (44.2 tons), with demand expected to continue growing in 2025. Sanctions on Russia’s central bank in 2022 reinforced gold’s role as a geopolitical safe haven, increasing its long-term appeal.Bitcoin Faces Market Headwinds as Trump’s Tariffs Shake Sentiment
Bitcoin, often dubbed "digital gold," has struggled to maintain momentum, rising just 5.1% year-to-date to $97,745. The market remains highly volatile, with price swings driven by macroeconomic risks, including President Donald Trump’s 25% tariff on steel and aluminum imports. While some view Bitcoin as an inflation hedge, its high correlation with risk assets has made it more susceptible to investor sentiment shifts. Meanwhile, gold continues to attract institutional capital as a traditional store of value, particularly during periods of economic uncertainty.
Read the full article on
theblock.
