The Important Reason Why Gold Prices Are Rising

Gold prices touched a high of $2,363 on Wednesday and are attracting heavy bullish sentiments in the indices. The XAU/USD chart is brimming with optimism as the precious metal is the most sought-after asset in the markets. It is now the top-performing asset in the commodity market leaving Crude and Brent oil behind.

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Estimates indicate that gold could also reach $2,500 this month experiencing a surge of 6% in the next few weeks. So why are gold prices rising rapidly this year in 2024? In this article, we will highlight the most important reason why the precious metal is rising in the charts.

Here’s Why Gold Prices Are Rising

Gold prices are rising in the charts in April 2024 as the precious metal is being accumulated by Central Banks. The governments of developing countries like China, Russia, and India are rapidly accumulating tonnes of gold in their reserves.

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The People’s Bank of China (PBOC) purchased tonnes of gold for 17 months straight since late 2022. China’s Central Bank now holds $73 million worth more gold than last month.

The Reserve Bank of India (RBI) purchased 13 tonnes of gold this month and accumulated it into its reserves. The overall cost to accumulate 13 tonnes of gold was worth a staggering $886.5 million by the RBI. India’s gold reserves have increased by 43% since 2022 with 64 tonnes being added since then.

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In addition, Russia’s gold holdings have increased by 2329 metric tonnes in the last 10 years. In 2023, Russia managed to become the second biggest purchaser of the precious metal and was only second to China.

In conclusion, all these developments are making gold prices to be on a roll this month. Read here to know a prediction about when gold prices could climb above the $7,000 mark next.