The course of gold action and the cash value of gold has reached new heights, beating records at $ 2,902 per ounce this week.
With an increase of 17.5% since the beginning of the year, the climb reflects an aggressive purchasing cocktail of the central bank, of geopolitical uncertainty and the sustainable attraction of gold as a safe refuge. Meanwhile, Microstrategy, newly renamed “strategy”, made a big stride in volatility.
Central Banks Buy Banks
According to the World Gold Council, central banks store gold at a stock -up pace – 694 tonnes in just ten months of 2024.
This wave, led by powerful players such as China, Poland, India and Turkey, underlines a pivot away from the US dollar and an increasing appetite for economic insulation.
The push, described as “delight”, has grown since Western sanctions hit the central bank of Russia in 2022, reaffirming Gold’s influence as a geopolitical safety net.
Almost 70% of central banks plan to continue to buy, 83% calling gold a critical shield against inflation and global instability.
Global geopolitical tensions arouse the demand of investors
Gold prices increase while geopolitical strains and trade tensions disrupt global markets. The prices imposed in the United States have sent shock waves across the world markets, moving fears of an economic crisis and triggering inflation problems.
The fears of instability push investors towards the gold contracts on gold, inflating prices while the race for safe assets is intensifying.
Taking into account American inflation, gold is as expensive as ever pic.twitter.com/bevmakockf
– Tracy Shuchart (𝒞𝒽𝒾) (@chigrigrl) February 11, 2025
Adding to turmoil, the 25% prices offered by Trump on steel and aluminum imports directly target Canada and Mexico, by train to global markets. The market is deeply confused, like a college that goes through puberty.
Microstrategy buys Bitcoin among the overvoltage of golden stocks
While Gold strikes Record Heights, Michael Saylor’s newly hit “strategy” said his first Bitcoin transport under the new name – 7,633 BTC bought on average of $ 97,255 per room between February 3 and February 9, 2025.
The announcement was made in a file of February 8, 8-K, stressing the company’s commitment to a Bitcoin-based cash strategy.
Since its inaugural purchase of Bitcoin in August 2020, the strategy stored 478,740 BTC at an average price of $ 65,033. Despite the accumulation, the company faces changing objectives. Its Bitcoin yield reached 4.1% between January 1 and February 9, 2025, but the projections of the year remain modest compared to the amazing yield of 74.3% of 2024.
An approximate of almost 2024, marked by a net loss of $ 670 million, forced the company to adjust its return target in 2025 to 15%.
Why is gold always the ultimate safety haven
As inflation warms up and rates amounted, gold does what it does best – acting as a financial anchor. Analysts of the Dutch multinational bank see more gains on the table, indicating that the ascending trajectory of gold could simply start.
The recent record push is not content to increase uncertainty – it is a reminder of the critical role of Gold in the fight against inflation and the shield against the currency oscillations. For countries that were distancing from the US dollar, this stability is invaluable.
Frightening times there. Indeed.
Meanwhile, companies and strategents are considering the same game with digital reserves via Bitcoin. At the end of Q1, we will see who gets the last laugh.
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