Gold, the fever for the yellow metal is unstoppable
Gold seems to be the safe haven par excellence for the world and Italian BTPs for our country and beyond. The value of the yellow metal is always growing as are the interests of the savings offers periodically launched by the government. Gold, especially since the Fed and ECB Central Banks raised interest rates, has set record after record (+12% in a year to 2325 dollars an ounce) and many analysts agree that this trend will continue even though bond yields are increasingly attractive. And this attractiveness, now more than in past years, seems to have a reason, namely that the The same central bankers worried about growing economic and geopolitical instability have begun to diversify by buying gold. Demand grew by 3% in the first quarter alone to 1238 tonnes (the highest value for 18 years).
Gold, a race led by Central Banks and giants such as China, Russia and Türkiye
“Central banks and OTC markets (where buyers and sellers trade contracts) push the price by adding 290 tons to their reserves in the first three months of the year. In the same period of 2022 there were 89, less than a third of its current demand” the analysts say in the Report. And not only the Fed and the ECB are leading the purchases but also China, India, Russia and Turkey, also seeking security and economic freedom from the US dollar. The Chinese bank has been purchasing the yellow metal for 17 months, with a gigantic acquisition process. In this case, investors try to make up for the strong uncertainties of the country’s real estate market with this investment. For its part, Russia (also to avoid sanctions) has said it intends to purchase over 5.5 billion rubles in gold per day (56 million euros per day) in May. This new gold fever grows despite the new prospect of higher rates for longer. A race that seems to be independent of the easing or otherwise of monetary rates or bond yields. In short, yellow gold seems to be more attractive than ever and shines with its own light regardless of the cost of money. But perhaps also from concern about the strong winds of war that show no signs of abating.