Gold prices are at record highs as the precious metal is increasingly valued as a politically neutral, safe asset.Anusak Laowilas/NurPhoto/Getty ImagesGold prices are reaching record highs because of strong buying by central banks.Central banks in countries aligned with China are diversifying their assets from the US dollar into gold.Central banks are favoring gold as a politically neutral, safe asset, insulated from sanctions.Gold prices are on a tear recently thanks to strong buying by central banks — a signal that the precious metal is increasingly seen as a geopolitical hedge.Last week, a top International Monetary Fund official pointed to gold's role in a potential fragmentation of the global economic and financial order."After years of shocks — including the COVID-19 pandemic and Russia's invasion of Ukraine — countries are reevaluating their trading partners based on economic and national security concerns," said Gita Gopinath, an IMF deputy managing directorIn particular, some countries are rethinking their heavy reliance on the US dollar in their international transactions and foreign reserve holdings, she said.Demand for gold has risen because it's seen as a "politically neutral safe asset, which can be stored at home and be insulated from sanctions or seizure," said Gopinath.Central banks accounted for one-quarter of gold demand in 2022 and 2023, as the institutions bought over 1,000 tons of gold each year, according to the World Gold Council in a recent report.The world's central banks continued buying gold, snapping up 290 tons of gold in the first quarter of this year — the strongest start to any year on record, according to the council.Gold as a hedge against US dollar-based sanctions riskConcerns about the US dollar's outsized influence and power in the world economy have been brewing for years.

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  • You Searched For "US dollar bonds" and got 20 results
    Us Dollar Bonds latest news, photos, videos, breaking news, special reports, blogs, and updates from Business Insider India ...
    05/24/2024 - 11:42 am | View Link
  • The US dollar has become so weaponized that central banks are snapping up politically-neutral gold
    Demand for gold has risen because it's seen as a "politically neutral safe asset ... The world's central banks continued buying gold, snapping up 290 tons of gold in the first quarter of this ...
    05/13/2024 - 8:57 pm | View Link
  • The US dollar has become so weaponized that central banks are snapping up politically-neutral gold
    Gold is seen as a politically neutral, safe asset, insulated from sanctions. China has doubled down on the metal in the last eight years.
    05/13/2024 - 8:34 pm | View Link
  • The US dollar has become so weaponized that central banks are snapping up politically-neutral gold
    Central banks in countries aligned with China are diversifying their assets from the US dollar into gold. Central banks are favoring gold as a politically neutral, safe asset, insulated from ...
    05/13/2024 - 1:00 pm | View Link
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