East Overtakes West as Driver of Surging Gold Prices and Demand
• Recent surges in gold prices to new highs indicate a shift in market control and demand from West to East • Growing eastern demand for physical gold is reducing the influence of Western paper gold markets • Central banks, especially China's, are purchasing record amounts of gold as a hedge and to reduce dollar dependence • Increasing eastern preference for physical gold signals its return as a key reserve asset for settling trade imbalances • The reallocation of gold from West to East marks a transfer of wealth and represents a challenge to Western financial dominance