Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil.
When interest rates fall, gold prices tend to rise, as bullion becomes more appealing than income-paying assets like bonds.
Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise.
The People’s Bank of China bought gold for the 17th straight month in March, adding 160,000 ounces to bring reserves to 72.74 million troy ounces of gold, according to Reuters.
Higher oil prices are likely to stoke concerns over inflation, boosting gold prices, according to the UBS research note.
Persons:
China —, Ulf Lindahl, Lindahl, Morgan, JP Morgan, Janet Yellen’s, Yellen, Mark Zandi, Jerome Powell, Wells, Richard Galanti, It’s
Organizations:
New, New York CNN, Investors, Federal Reserve, China, People’s Bank of China, Reuters, UBS, Research Associates, Moody’s, of Commerce, Costco
Locations:
New York, China, India, Turkey, Central, Wells Fargo