PRESS ROOM
Gold being drawn to record highs as inflation and geopolitical risks loom
Friday 11th March '22
Gold has historically been seen as an effective geopolitical hedge but especially so when investors perceive the geopolitics to pose a threat to economic growth. With the ongoing conflict adding to inflationary pressures through broken supply chains and rising commodity prices, investors are increasingly adding gold to hedge against the risk. If the conflict does not come to a resolution soon, major central banks including the US Federal Reserve may also be forced to rethink their policy tightening schedule this year. Higher inflation for longer alongside a dovish tilt from central banks could help keep gold supported.