Gold crossed the $ 4,000 point per gram, which was a new milestone in a rising 3-year wave that challenged the stubborn skeptics and broke the analytical models that the uphill and descended forecast for decades. Here, in 5 cards, the story of how the precious metal casts its reputation as a ‘primitive remnant’ to regain its place in the heart of the global monetary system. The pandemic turn for gold after investors and central banks avoided it for most of the present century, a turn for gold began during the chaos of the Corona epidemic, when it violated the level of two thousand dollars per ounce. The Gulf then gained new momentum after the invasion of Ukraine, with Chinese central banks and investors leading a 27% period in 2024, before Donald Trump’s return to the White House gold strongly launched above the $ 3,000 obstacle in March. In the latest phase of this devastation, Gold received a boost of almost every macro economic factor, as the US government’s closure and the weakness of the US dollar led to a remarkable acceleration in the market. Read more: A gram of gold exceeds $ 4,000 for the first time, powered by the US government. Gold’s inflation-adjusted high last month. Gold also exceeded its historic inflation-adjusted peak recorded more than 45 years ago when prices reached $ 850 an ounce in January 1980. At the time, the United States had a collapsing currency, high inflation and an aggravating economic recession. Also read: Aaron Brown: The current gold fever has nothing to do with inflation … and not with gold. The price doubled in just two months after former US President Jimmy Carter Iranian assets frozen in response to the hostage crisis in Tehran, which increased the perceived risks to keep dollar assets in some foreign banks. Some gold optimists believe today that there is an agreement between the current period and those historical circumstances. Gold surpasses treasury effects. During the increase, central banks were a dominant power in the market, which purchased large quantities of metal, which urged analysts and traders to develop new models to detect this renewable source of demand. These purchases were based on the desire to diversify reserves away from the US dollar and protect assets from hostile countries. Goldman Sachs: Gold prices can rise to $ 5,000 in this case. Although gold may not be the most important pillar of the global monetary system as before, the market value has almost exceeded the value of the US Treasury bonds that have non-American central banks in their foreign exchange reserves. The value is still much lower than the total global reserves denominated in dollars, but the recent increase this year has enabled gold to surpass the euro to become the second largest asset in the reserves of central banks around the world. The United States also benefited from this wave, as the market value of its gold reserves exceeded one trillion dollar last month, which is about 90 times more than the number recorded in the official government budget. China is taking a step back as in 2024. The demand for gold in China was an important factor in supporting gold during the first four months of this year, with Trump’s tariff plans causing unrest in the global markets and unleashed a new wave of demand for safe assets in China. Gold in the treasure trove of countries: Who is in the lead? The answer is here. Chinese purchasing power is reflected in the so -called ‘Shanghai Premium’, which is the difference between the benchmark price in London and the prices on Chinese stock exchanges. But gold prices in China have fallen to the reference price in recent months, even though the precious metal has reached new peaks, suggesting that Western investors were the most important force behind the recent increase. Chinese markets reopen today after the golden week holidays, and the most important question for traders is whether it will give gold over $ 4,000 a sign of support or resistance to the rise. Gold ETF Holdings jump for Western investors, both retail and institutional, gold-supported exchange-traded funds are one of the most popular ways to invest in the yellow metal. Gold-backed exchange traded funds in China attract investors When an investor buys a share in a gold-supported fund, the fund operator must buy an equal amount of the metal to reflect the new investments, which is financial inflows into the market that raises prices. The possession of some of the largest of these funds reached a record level during the era of the Corona epidemic, before taking a long drop with profit. However, this outflow stopped in the mid -2024, and since then more than 16 million ounces have accumulated in these funds. However, Holdings is still under the peak recorded during the epidemic, which optimists view an encouraging sign that the upward wave has not reached its peak. His end still. “$ 4,000 gold intersection not only reflects interest rate expectations or a weak US dollar, but rather a deeper shift in investor confidence and global capital flow,” says Ole Hansen, commodities strategist at Saxo Bank. “Sanctions, assets and concerns about financial sustainability have forced investors – both institutions and governments – to have real assets that lie outside the traditional financial system.”
Gold surpasses itself in 3 years and achieves historical prices
