Part 3/7:
Geopolitical Risks and Central Bank Demand
A pivotal moment in understanding the gold market came with the freezing of Russian banking reserves held in Western banks. This event marked a shift in how central banks, particularly in China and India, perceive their reserves and the Western banking system. With increasing distrust directed towards Western banks, central banks have turned to gold as a safer alternative to diversify their assets.
Mainstream media narratives have struggled to encapsulate this reality, often attributing rising gold prices to tariffs or concerns about global economic growth. Yet, insights from market insiders reveal a more nuanced story driven largely by central bank activities rather than retail demand or economic indicators.