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The US Dollar Is So Strong That China's Central Bank Keeps Loading Up On Gold
Not just China, but other central banks, including Turkey and India, are loading up on gold amid a stronger US dollar.
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The Lede
China's economy is in a funk, and people are rushing out to buy gold as a safe-haven asset to hedge against economic uncertainties, sending prices of the precious metal to record highs. But it's not just about economic uncertainty. The heightened interest in gold is also a pushback to the strong US dollar, which is making it too expensive for emerging nations such as China to import goods.
Key Details
- China's economy is in a funk, and people are rushing out to buy gold as a safe-haven asset to hedge against economic uncertainties, sending prices of the precious metal to record highs.
- Other central banks are also loading up on gold. The World Gold Council wrote in a report last week that big gold buyers included China, Turkey, and India.
- The spot gold price is now about $2,330 an ounce, off its record highs above $2,400 an ounce in April.
