Gold’s Global Momentum: Why Smart Money Keeps Buying
Gold’s momentum continues to build as the world’s most sophisticated investors, central banks, and institutions quietly increase their exposure to the metal. The latest global indicators point to a broadly bullish environment for gold, underscoring its renewed role as a cornerstone of financial stability.
China’s central bank has extended its buying streak to a tenth straight month, adding nearly two tonnes to its reserves in August—a move mirrored by other emerging-market nations seeking to diversify away from the U.S. dollar. At the same time, global gold-backed ETFs continue to see net inflows, signaling growing investor appetite for hard assets as inflation lingers and monetary policy uncertainty deepens.
The U.S. dollar’s share of global foreign-exchange reserves has edged lower, reflecting a gradual shift toward diversification. Meanwhile, U.S. real yields have eased slightly, reducing the cost of holding non-yielding assets like gold.
Physical demand in China has softened from earlier highs, with Shanghai’s premium to London prices narrowing, but global fundamentals remain strong. For long-term investors, these signals suggest that gold’s appeal as both a portfolio hedge and a store of value is far from fading , n fact, it may be entering a new golden era.
