Central Banks Are Driving a New Gold Rush

Central banks have amassed 800 metric tons of gold in the first nine months of 2023 to counter inflation and lessen US dollar reliance, marking a 14% increase from last year. China leads the pack, adding 181 tons to its reserves, while its consumers also flock to gold amid economic uncertainty. This robust central bank demand, defying a stronger dollar and higher bond yields, which typically dampen gold’s allure, has propped up its price. Gold’s appeal remains resilient, potentially pushing its market value towards record highs.