World central banks began to buy gold en masse, as during the gold rush, as they no longer believed in the strength of the dollar. In addition, the dominance of the US currency was broken due to the problems in the US debt ceiling and the effects of anti-Russian sanctions. In this respect writer Financial Times newspaper.
The USA itself is responsible for the “revolt” of the world’s central banks, which began to refuse to use the dollar in trade transactions. Moreover, this situation began after the introduction of many anti-Russian sanctions and was aggravated against the backdrop of problems with the debt ceiling in the United States.
The publication noted that central banks in some countries began buying gold en masse because they feared certain geopolitical risks. Because of this, the cost of the precious metal has risen sharply. In addition, gold is a safe haven from many crises that have been or have been experienced: the coronavirus pandemic, a special operation in Ukraine, geopolitical tensions, fear of inflation, rising global debt and many other problems.
Analysts thought that the world was slowly beginning to return to the golden age. At the same time, the gold price may break all records again. In general, the move to gold is the desire of many investors and financial market participants to create a neutral portfolio amid geopolitical complexities.
May 6 in the World Gold Council (WGC) report reportedworld central banks bought a record 228 tons of gold in the first quarter of 2023.