Research Highlights East’s Rise as Challenger to West’s Gold Pricing Tradition
According to a report on Seeking Alpha, the global gold market is experiencing a significant shift in power from the West to the East. The East’s robust acquisitions have led to a weakening of the West’s control over gold prices. Here are the key points from the research:
1. The East has been pushing gold prices upwards, challenging the West’s historical dominance.
2. Historically, the movement of gold between the West and East mirrored price fluctuations.
3. However, in late 2022, gold prices surged despite stable real interest rates, indicating a change in the narrative.
4. Switzerland’s gold exports to Asia have significantly increased, suggesting covert acquisitions by central banks in emerging markets.
5. The report predicts that the East’s continued gold purchases could undermine the West’s influence over gold pricing, potentially leading to a shift in the global monetary framework.
In April 2023, gold surpassed the $2,000 mark, with predictions of it potentially reaching $2,500 in the long term. Currently, gold is priced at $1,914 per troy ounce, showing a 5% appreciation against the U.S. dollar over the past six months and an 8.8% appreciation over the past year.
Hot Take: The research highlights the changing dynamics of the global gold market, with the East emerging as a strong challenger to the West’s pricing tradition. This shift could have long-term implications for the global monetary framework.
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