Central Banks Prepare for New Monetary Regime, Driving Demand for Gold
According to investment management firm Goehring & Rozencwajg, central banks, especially those in emerging economies, are increasing their gold reserves in anticipation of a new monetary regime, which could potentially lead to a loss of reserve currency status for the U.S. dollar.
Leigh Goehring, the company’s managing partner, predicts that gold will play a crucial role as a settlement mechanism in this new financial order. Goehring believes that the price of gold could surpass $2,100 per ounce this year, driven by assertive gold buying from central banks, particularly in countries like China, India, and Turkey. He argues that a shift in the dollar’s reserve currency status would have a significant impact on global markets.
Goehring’s views align with other investors and analysts who anticipate a substantial rise in gold prices in the near future, with gold potentially becoming the ultimate settlement tool in the new monetary regime.
Clever Robot News Desk 23rd June 2023