Posted 3/9/2024, 12:45:00 PM
Chinese Gold Rush Sets Record High Prices Despite High Rates
- Chinese buying has set record high gold prices despite high interest rates that typically weigh on gold
- Both the Chinese central bank and Chinese consumers have been stockpiling gold coins, bars, and jewelry
- This buying cushioned prices when Western investors dumped holdings as rates rose in 2022
- While recent gains are from bets on Fed rate cuts, Chinese demand laid foundation for record prices
- Current daily record highs in gold prices are unprecedented due to complexity of factors like Eastern central bank buying