The gold market’s sharp March drop, down 12% to roughly $4,690 was, was the worst monthly decline since 2008. It was alarming at first glance, but it didn’t deter the relentless, one-directional accumulation by BRICS+ nations.
The latest study by EBC Financial Group notes that the bloc now controls more than 6,000 tons of gold, or 17.4% of global reserves. It is a big jump from 11.2% it had in 2019. Gold has become a “sovereign shield,” protecting nations from sanctions risk and the declining influence of the U.S. dollar.
“This is not speculative demand, it is policy,” EBC analyst Michael Harris noted, according to KITCO.
Buying on Weakness
Gold’s March weakness was multi-pronged. An energy shock renewed inflation fears, erasing the Fed’s rate-cut expectations. Meanwhile, it put pressure on the market to trim the winners to support other positions. Retail leverage just contributed to the cause. According to the Atlantic Council, retail market borrowing has reached a …
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