Gold Hits Fresh Record - Action Forex
In metals, gold hit a fresh all-time high above $3’500 per ounce in Asia, surpassing its April peak. The rally reflects a softer dollar but also strong central-bank and institutional demand as investors rotate out of US Treasuries. The share of US Treasuries held by foreign central banks has been declining for over a decade, but that shift into gold accelerated this year amid US debt concerns, ratings downgrades, trade tensions and geopolitical risks. Central banks’ gold allocations even surpassed their US Treasury holdings this year. Meanwhile, Indian pension funds are seeking approval to invest in gold ETFs, hinting at strong demand despite record price. Silver also surged to its highest level since 2011. Both metals have further room to run. Yet, with the gold–silver ratio still above its long-term range of 60–80, silver may have greater upside potential.
