Today the top trends forecaster in the world warned escalating wars may send gold prices higher this year.

June 23 (King World News) – Gerald Celente:  Gold bullion has surpassed the euro to become central banks’ second most plentiful reserve asset in terms of value, according to a new report from the European Central Bank (ECB).

The euro made up 16 percent of banks’ reserves while gold accounted for 20 percent, the FT said. The dollar remains the chief reserve asset at 46 percent. 

The banks of China, India, Poland, and Turkey led the list of buyers.

“Central banks continued to accumulate gold at a record pace” in 2024, the report said. For a third consecutive year, central banks have grabbed more than 1,000 metric tons of gold, 20 percent of the world’s production and twice the yearly average in the previous decade. 

“Two-thirds of central banks invested in gold for purposes of diversification, while two-fifths did so as protection against geopolitical risk,” the ECB’s report said.

The banks’ total gold reserves reached 36,000 metric tons last year, approaching 1965’s record of 38,000 metric tons. 

Gold’s price soared 30 percent last year and 27 percent so far this year, touching $3,500 an ounce at one point this month. The increase is a key factor in vaulting gold above the euro as central banks’ second most valuable reserve asset.

Also, central banks have actively been diversifying away from the dollar as the U.S. weaponized its currency against Russia after the invasion of Ukraine. In addition, the U.S. federal debt has ballooned and U.S. fiscal policies have become erratic, the ECB’s report noted.

A recent ECB survey of 57 central banks holding gold last year found that concerns about possible sanctions, the rise of digital currencies, and an eagerness to depend less on the U.S. dollar were chief motives among emerging economies to stockpile gold. 

TREND FORECAST:
With Israel attacking Iran and our forecast that the Ukraine War will escalate while the global economy slides into Dragflation; declining economic growth and rising inflation, gold prices will keep rising. In the absence of Peace on Earth, Good Will to All, gold may well spike above $4,000 per ounce this year.

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James Turk discusses what is happening in the gold and silver markets and much more CLICK HERE OR ON THE IMAGE BELOW.

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