Central banks actively buying gold due to economic turmoil, UBS predicts gold price increase

From Investing.com: 2024-06-29 06:30:21

Central banks have been actively buying gold, highlighted by UBS for its hedge against inflation and economic turmoil.

Following the Ukraine war, central banks from vulnerable countries have increased gold reserves post freezing of Russian assets.

Central bank gold holdings reached 37,000 metric tons, with developed countries like US, Germany leading.

Emerging markets like Russia and China are rapidly accumulating gold to reduce reliance on major currencies.

Gold’s long-term value, inflation hedge, and liquidity attract reserve managers amid rising public debts.

Discrepancies in gold purchases suggest underreporting by sovereign wealth funds, impacting the market.

Central bank actions historically influence gold prices, with UBS predicting a $2,600/oz price by year-end.

UBS remains positive on gold due to central bank demand, geopolitical tensions, and high inflation, predicting $2,700/oz by mid-2025.



Read more at Investing.com: How long will central bank buying of gold last? By Investing.com