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Investment Demand

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Gold's climb to all-time high hindered by US banking crisis and debt ceiling debate.

Originally Published 2 years ago — by Kitco NEWS

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Source: Kitco NEWS

Gold prices dropped more than 2% on Friday as market expectations regarding interest rates continue to shift. However, many analysts remain bullish on gold due to the ongoing banking crisis and potential for safe-haven demand. The decline in global gold demand in Q1 2022 was led by investment demand, which fell 51% to 273.7 tonnes, but there is still solid growth potential for investment demand. The Fed's tightening of screws is creating pressures on other parts of the financial system, which could unravel relatively quickly, making it a good time to include some hedges in portfolios.