So far this quarter, cash has spilled into commodities at a record pace as traders scramble to take advantage of the lucrative macro-driven opportunities opening up in the markets and seek hedging against the fastest rising inflation. registered in 40 years.
According to Citigroup, commodity capital inflows from retail and institutional players this quarter totaled $ 700 billion, the largest net inflows recorded since the global financial crisis.
This week, gold received another major boost after Western economies sanctioned Russia and removed several Russian banks from SWIFT, the financial payments network that serves as a bloodline for the global financial system.
In response to these sanctions, the Russian central bank said it will start buying gold on the domestic precious metals market again. The central bank’s gold reserves currently stand at over 2,000 tons, making it the fifth largest gold reserve in the world.
Gold is on track for its best quarter since 2007, but the big question now is: Will prices spectacularly return to all-time highs?
Where are the prices going next? Watch The Commodity Report now, for my latest forecasts and price predictions:
For a look at all of today’s economic events, take a look at our economic calendar.