Central banks around the world have continued their trend of purchasing gold, acquiring over 1,000 tonnes in 2024. This marks the third consecutive year of significant gold buying, reflecting a growing confidence in the precious metal as a safe-haven asset amid economic uncertainties.
The World Gold Council reported that central banks have been actively increasing their gold reserves. This trend is largely driven by concerns over inflation, geopolitical tensions, and the overall stability of fiat currencies. As central banks diversify their assets, gold remains a preferred choice due to its historical value retention.
Several economic factors have contributed to the surge in gold buying by central banks:
The continued buying of gold by central banks has several implications for the market:
The trend of central banks purchasing gold is a clear indicator of the current economic climate. With over 1,000 tonnes bought in 2024 alone, this pattern is expected to continue as central banks seek to bolster their reserves against economic uncertainties. As gold prices rise and market confidence grows, investors will be closely watching these developments in the precious metals market.
A worker has died at Harmony Gold's Mponeng mine following a seismic event that caused a ground collapse. This incident raises serious safety concerns in deep-level mining operations.
Crude oil prices remain stable despite a significant increase in U.S. crude stockpiles, influenced by supply disruptions and global demand concerns.
Iron ore prices have declined as supply concerns ease in Australia following the reopening of key ports after Tropical Cyclone Zelia. Despite this, demand pressures remain as analysts predict a drop in imports to China.
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