We have just seen Gold prices rise to all time highs, and continue to make ATH over the past few days. Very exciting to see gold breakout above US$2150 and hoping that this can be well sustained by the significant increase in demand from central banks since 2022. Presumably the key underpinning to the demand is that the position of gold in foreign exchange reserves has always been relatively small but perhaps more importantly it is a perceived need to have greater diversification away from USD in for exchange reserves. In any case when central bankers buy they are probably the least price sensitive kind of customer. Whilst Geo political tensions is a driver but realistically there is nothing new in this aspect. In the days and months ahead I expect the price of gold to continue climbing albeit with a little chance for a pullback towards the US$2000 level, which is well supported. it is also not unlikely that the poor cousin of silver will also catch up even though it is roughly halfway to its all-time high at the moment. Looking forward to the lustre of these precious metals driving out performance in the year ahead.
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