El-Erian: Dollar Diversification Fuels Gold's Unprecedented Rally
Published: Monday, 28 October 2024 09:42 | 
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Mohamed El-Erian attributes the recent surge in gold prices to a deliberate move by global financial institutions to diversify away from the US dollar. This trend is driven by central banks slowly reducing their dollar reserves and a gradual shift away from the dollar-based payment system. Recent events, such as Russia's economic resilience despite sanctions and perceptions of inconsistent US foreign policy in the Middle East, have accelerated this diversification process.
BlackRock: Opportunity Cost of Holding Gold is Falling
Published: Monday, 28 October 2024 09:33 | |
| As interest rates decline, the relative appeal of gold is increasing, according to BlackRock's Karim Chedid. He notes that gold's non-yielding nature is less of a drawback in this environment, positioning it as a valuable diversification hedge for investors seeking to balance their portfolios.
High Prices Reshape China's Gold Consumption Patterns in 2024
Published: Monday, 28 October 2024 09:28 | |
| China's gold consumption dropped 11.18% in the first three quarters of 2024 due to high prices deterring jewelry purchases. While gold jewelry demand fell 27.53%, purchases of gold bars and coins increased by 27.14%. Despite a slight dip in domestic gold production, overall output rose 3.2% year-on-year.
Gold Rally Pauses: Money Managers Raise Net-Long Positions in Gold
Published: Monday, 28 October 2024 09:27 | |
| Gold prices retreated slightly from record highs after Israel's restrained strikes on Iran eased geopolitical tensions and reduced safe-haven demand. While gold remains supported by factors like expected Fed rate cuts and central bank buying, the targeted nature of Israel's response has opened the door for potential de-escalation in the Middle East conflict.
Gold Prices Pause Ahead of Key U.S. Economic Indicators
Published: Monday, 28 October 2024 09:24 | |
| Gold prices dipped slightly Monday morning as investors await key U.S. economic data that could influence the Federal Reserve's interest rate decisions. Despite reaching record highs recently, gold faced pressure from a stronger dollar and rising Treasury yields. Analysts remain optimistic, with UBS projecting gold to hit $2,900/oz within 12 months, driven by expectations of lower U.S. interest rates.