Last week, gold prices soared to a new all-time high of $2,685 per ounce, surpassing the previous record high of $2,670 per ounce for precious metals set just a day earlier – extending gains by a whopping 49%, over 11 years . -month stretch.
According to analysts at GSC Commodity Intelligence, the precious metal is being driven by “a host of bullish tailwinds,” including the ongoing de-dollarization movement taking shape globally, with central banks around the world continuing to accumulate gold at a record pace.
The global turn to lower interest rates. In addition, growing instability in the Chinese economy is forcing Beijing to launch its most significant economic stimulus package since the 2008 global financial crisis.
The importance of these two factors alone cannot be underestimated. That’s because China’s massive stimulus measures could reignite global inflation very quickly, while at the same time the US Federal Reserve is aggressively cutting interest rates.
And last but not least: escalating concerns about rising global debt and out-of-control government borrowing, which currently stands at a record $315 trillion. This in itself is another major catalyst fueling a global rush to gold, making precious metals allocation in a diversified portfolio an essential necessity.
The Decade of Debt: How Rising Global Debt Will Drive Gold’s Rise
The extraordinarily high debt burdens in the world’s major economies increase the likelihood of not one but possibly several debt crises.