Central banks switch to gold to the detriment of the dollar

Analysts note that the central banks of the largest world countries have begun to gradually abandon the US dollar and switch to gold. At the moment, central banks account for 33% of the monthly global demand for gold.

Thus, gold, the oldest and most traditional of assets, has again become a tool in the hands of regulators against the dollar, which has confidently dominated all other assets for a long time. In the past, both gold and the dollar were considered as a safe haven, but today the precious metal has become safer, having successfully proved itself during the banking crisis in March this year. Then gold continued to grow, while the dollar fell.

It is noted that over the past six months, gold has increased in price by about 20%, while the demand for it comes from central banks reducing their dollar reserves, and not from ordinary buyers in the face of large and small investors.

More large central banks buying gold are located in developing countries, including China, Russia and India. Moreover, these countries, along with other BRICS countries, Brazil and South Africa, are also making efforts to create a new currency independent of the dollar.

On Wednesday, the price of gold is stable: the current quote of the asset is $2.005.10 per ounce. At the same time, yesterday the asset showed a decline to the level of $1.987.