Allocation to Gold Is Set to Rise: How Will Prices Respond?
The latest WGC reports show that institutional allocation to gold will increase. What if there is more to it than just “higher demand, higher price”?
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The latest WGC reports show that institutional allocation to gold will increase. What if there is more to it than just “higher demand, higher price”?
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Gold is an increasingly important asset for European pension funds, with new research showing many funds intend to increase their holdings of the yellow metal in the coming months.
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The current high inflation could theoretically transform into hyperinflation, disinflation, stagflation, or deflation. What does each mean for gold?
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Chat logs introduced as evidence by prosecutors at the Chicago spoofing trial of two former precious-metals traders for Bank of America Corp.’s Merrill Lynch unit show one of them, Edward Bases, bragging about how easy it was to manipulate prices.
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After years without substantially changing the amount of gold in its international asset reserves, the Brazilian Central Bank headed by Roberto Campos Neto bought 41.8 tons of the metal in June.
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The British government sought Monday to prevent Venezuelan leader Nicolás Maduro from gaining access to nearly $2 billion of gold held by the Bank of England as the U.K. Supreme Court started hearing a case that hinges on the question of who should be considered the Latin American nation’s presid...
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The real interest rates should remain low, so gold prices shouldn’t drop like a stone. Actually, in the longer run, when inflation creates some economic problems while the economic growth slows down, the yellow metal could finally benefit from the stagflationary conditions.
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There are two dimensions to the global de-dollarization that is taking place: a digital one, and a golden one. Let it be noted that China, as the primary initiator of CBDCs and the number one consumer and importer of gold in the world, has every chance of doing well out of this Great Game.
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It seems that gold is reacting now more to the decrease in the bond yields rather than to the changes in the US or EU monetary policies. As long as the interest rates are declining, gold is catching its breath. But this decrease may be temporary, so better watch out! Powell’s testimonies to Congr...
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Banks clearing gold trades in London can apply for an exemption from tighter capital rules due in January 2022, a British regulator said on Friday, removing what some said was a threat to the functioning of the market.
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Russia’s sovereign wealth fund cuts US dollar reserves to zero while boosting the share of the euro, the Chinese yuan and gold, the country’s Finance Ministry announced on Tuesday.
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Gold is a matter of national strategy - an economic strategy - a line of defense. Whoever has gold does not belong to anyone - he or she keeps gold without obligation, Orbán stressed. He stated that the Hungarian gold reserve plays a very important role in the total Hungarian foreign exchange res...
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There are several important factors affecting gold prices. Many analysts focus mainly on the US dollar and real interest rates. However, what is sometimes even more important is economic confidence. Of course, the level of economic confidence is partially reflected in the strength of the greenbac...
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We will have either more lasting high inflation (but the Fed is slow to admit it), or the Fed doesn’t really want to increase its interest rates substantially. In both cases, gold should benefit, either from higher inflation and lower real interest rates, or from more dovish Fed than it’s current...
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With the CPI annual inflation rate spiking 5% in May, gold could have gained a lot in response. However, it rallied only $20. Should we prepare for more?
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French President Macron told a news conference he would like the sale of gold reserves to help finance this planned aid for Africa.
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Gold’s future depends on the Fed’s reaction to rising inflation, or whether or not investors will focus on nominal and real interest rates. If the US central bank stays behind the inflation curve, real interest rates will stay in the negative territory, supporting the price of gold.
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It will take several more months to fully eliminate the slack in the labor market. The implication is clear: precious metals investors shouldn’t bet on a change in the Fed’s stance anytime soon. And as the yellow metal is very sensitive to tapering fears, this is positive news for gold bulls.
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With the Basel III accord, the most important change for precious metals is that banks would be required to hold reserves against their assets. Under the coming regulations, banks would count unallocated precious metals at 85 percent of their value on the bank’s books in making the determination...
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Biden proposes $6 trillion of government spending in the 2022 fiscal year. This continuation of ultra-loose fiscal policy could support gold in the long run.
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