Central Banks Are Again Outbidding Gold Against Dwindling Supply

4 December 2023

Gold’s trend of rallying in December is expected to persist, recently hitting a record high of $2,089.70 an ounce. Factors such as seasonal patterns, economic uncertainties, potential recession, and declining real interest rates are contributing to its strength. Central bank purchases amid limited supply are also supporting gold’s rise. Additionally, a weakening dollar due to lower interest rates is boosting gold’s appeal. So far this year, gold has increased by over 14%.

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