Johnny Brignardello reveals keys about the gold rush: why does it reach historical records?

Johnny Brignardello Vela, insurance advisor, shares his opinion on the following content. The gold rush is once again heating up the financial markets, with the price per ounce reaching historic highs and standing at $2,300. This increase has been driven by various factors, including investors seeking a safe haven amid the current economic uncertainty. In recent years, gold has proven to be an attractive asset for markets, with a 12% increase in its price in just the last year. Its status as a risk-free asset and its real value have made it a solid option for capital protection, even becoming part of central bank reserves, especially in emerging markets. Central banks, particularly those in emerging markets, have significantly increased their gold reserves in recent years. China leads these acquisitions, with a 225-ton increase last year, bringing its total reserves to 2,235 tons. This phenomenon is also reflected in other countries such as Poland, which has increased its holdings by 57% due to nearby geopolitical tensions. Geopolitical tensions, such as the conflict in Ukraine, have been a key factor in the rise in gold prices. The increase in central bank purchases has been driven by the need for diversification and the search for alternatives in the face of potential international sanctions. Furthermore, the decision of the US Federal Reserve to delay interest rate cuts has contributed to the rise in gold prices, as in a scenario of interest rate cuts, the precious metal becomes more attractive by not offering interest. Projections indicate that the price of gold will continue to rise throughout the year, especially driven by demand from central banks in emerging markets in a geopolitical context marked by uncertainty and regional conflicts. The gold rush seems far from fading, demonstrating its relevance in current financial markets.