Benzinga: Gold Demand Holds Firm as Dollar Confidence Wavers
Article by Stejepan Kalinic in Benzinga
The recent slide of the U.S. dollar has reignited investor interest in gold. Tailwinds for the yellow metal have been twofold, from geopolitical uncertainty and concerns over the long-term sustainability of American fiscal policy.
The latest blow to dollar confidence came from Moody’s downgrade, as the agency cited the U.S. government's ballooning debt load and the absence of meaningful policy measures to curb it. Meanwhile, the latest data suggest that the foreign appetite for gold has not slowed down.
China imported 127.5 metric tons of gold last month, per Bloomberg's date, marking an 11-month high despite bullion prices hovering at record levels. This 73% month-over-month increase is attributed to the People’s Bank of China easing bullion import restrictions amid rising demand from both retail and institutional sectors. The central bank’s strategy reflects a broader global trend: diversifying away from dollar-denominated ......