While gold buyers are presumably getting weighed down by all the gold they are purchasing, their mood is buoyed by the gravity-defying price of gold which is lifting them to greater heights of wealth.
Gold has more than doubled to its current price of around US$4,600 ($5,900) from 1Q 2024. Driven by strong demand from central banks, institutional and retail customers, the price of gold has been on a tear over the past two years.
Analysts have attributed the strong demand for the precious metal to geopolitical tensions. “Gold remains supported not by prolonged conflict per se, but by an ongoing backdrop of geopolitical uncertainty and policy unpredictability,” notes OCBC Group Research in a report on Jan 5. “Demand has also broadened beyond traditional official and institutional buyers, with retail participation rising alongside improved accessibility and renewed focus on gold’s role as a store of value.”
