Gold prices: ‘Central banks increasingly crave a non-politicised reserve asset’

 
With the price of gold at an all-time record high, Rob Morgan, Chief Investment Analyst at Charles Stanley says : “Gold has performed remarkably well in 2024 to date, rising espite elevated real interest rates. The explanation lies in ongoing central bank buying, strong investment flows out of Asia and resilient consumer demand. Our recent DIY investor research found that well over a third (35%) of investors have increased their exposure to gold over the last three months.*

“Central banks, investors, and households in the East have recently emerged as heavy buyers of gold, notably in China as the end of the property bull market has triggered a major change in attitude towards it. The renewed popularity of gold is linked to the trend of deglobalisation and heightened international tensions as central banks increasingly crave a non-politicised reserve asset. As the world continues to fragment geopolitically this trend could continue.”

*Research was carried out for Charles Stanley by Censuswide. It surveyed 1,007 DIY Investors in the UK (’Self-Directed’), defined as; investors who actively choose their own investments, making their own asset allocation decisions, aged 18+. Survey conducted between 05.07.2024 and 10.07.2024.