The gold price has reached a new record high, partly thanks to growing interest from Russia and China, which want to reduce their dependence on the US dollar. This is evident from a recent report from the Bank of France.
According to the report, “dedollarization,” in which central banks move away from assets denominated in U.S. dollars, has significantly increased demand for gold.
Despite global outflows from gold exchange traded funds (ETFs), the price of the precious metal continues to rise. This month, gold reached an all-time high (ATH) of $86,362, marking a 66% increase from its 2022 low.
Shift at central banks
According to data from the World Gold Council (WGC), demand for gold, mainly from Russia and China, has doubled in the past two years. In addition, the share of the US dollar in global central bank reserves has fallen to 59%, the lowest level in 25 years.
Private investors
In addition to central banks, private investors from China and India also play an important role in the rising gold price. Since early 2024, Chinese and Indian households have significantly increased their investments in gold, boosted by declining stock markets in China and an increase in savings capacity in India.
When will Bitcoin follow?
The Bitcoin (BTC) price is currently also benefiting from the interest rate cuts by the US Federal Reserve (Fed), but a new price record is not yet set. However, trading legend Peter Brandt predicts that Bitcoin could rise 400% against gold in the coming months.
Other analysts, such as Markus Thielen of 10x Research, also predict a strong increase in the last quarter of this year. Thielen emphasizes that Bitcoin has historically seen breakouts during this period, and he even predicts a new all-time high before the end of 2024. This creates a lot of optimism among investors for the coming months.
Source: https://newsbit.nl/goudprijs-bereikt-recordhoogte-door-toenemende-vraag-vanuit-rusland-en-china/
