Markets Insider: Central Banks Boost Gold Reserves to Diversify from the Dollar
Article by Simon White in Markets Insider
Powell might not be overly worried about inflation - with his recent comments reiterating the Federal Reserve is on track to cut rates this year - but other central banks are not so relaxed.
Gold’s new high signals global central banks are likely accumulating the precious metal in an effort to diversify away from the dollar, as persistently large fiscal deficits threaten to further erode its real value and lead to more inflation.
Gold’s move in recent days has been broad as well as pronounced (as well as hinted at by low gold volume), with the precious metal making 50-year highs versus three-quarters of major Developing Markets (DM) and Emerging Markets (EM) currencies.
The biggest holdings of gold after ......