look news india
Ahmedabad: There is a strong rise in the price of gold. Along with gold, the prices of silver and palladium are also sky high. However, the demand for gold is increasing not only in India but globally. Gold is now emerging as the most protective asset class against inflation and recession.
According to a report, the share of global central banks in global gold reserves has reached a record level of 12.1%. If we look at the figures, the share of central banks in gold reserves is the highest since 1990. According to experts, all the excess liquidity is now going into gold. Gold is being seen not only as a safe haven but also as an investment unit.
China, India, Turkey and Poland have the highest share in gold purchases. The central bank of this country is buying gold in large quantities. The share of gold in China's foreign exchange reserves has reached 5.4 percent. According to the latest data of 2024, the Central Bank of China has 2264 tons of gold, which is a historical peak.
The price of gold has increased by 33 percent in the current year. Until now, crude oil has generally been boosted by global concerns that supply chain disruptions will push prices higher, but such volatility has now subsided and crude oil has lost its luster as global demand slumps. On the other hand, the dollar is now losing its dominance as a safe haven.
The dollar index is currently trading at $105 compared to a low of $75 in 2008 and a record high of $120 around 2022, but gold and silver are becoming not only a safe haven but also a major means of investment globally.