Gold Resurgence: Central Bank Buying Signals Potential Bull Market

Central banks are set to surpass 1,000 tons of gold purchases for the second consecutive year, aiming to reach levels not seen since 2010. This surge in buying suggests a potential return to a bullish gold market. Adding to the optimism, gold futures are experiencing the steepest contango since the 1980s, indicating growing interest and potential support for a sustained uptrend in gold prices.

The significant increase in central bank gold purchases underscores a renewed confidence in the precious metal as a store of value and a hedge against economic uncertainties. Investors are closely watching these developments, considering the historical significance of central bank actions as indicators of broader economic trends.

As the gold market shows signs of resilience and potential upward momentum, market participants are anticipating a shift towards a more favorable environment for gold investments. The steep contango in gold futures further amplifies this sentiment, providing traders and investors with a compelling backdrop for a potential gold bull market in the near future.

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Central Banks are on pace to buy more than 1,000 tons of gold for the 2nd straight year and possibly reach the highest level purchased since 2010 pic.twitter.com/4WCJnKWcnG

— Win Smart, CFA (@WinfieldSmart) December 7, 2023

Gold futures are in the steepest contango since the 1980s! 😲🪙📈 pic.twitter.com/MxXrHsetty

— Longview Economics (@Lvieweconomics) December 8, 2023

Greg Weldon Sees Breakout For Bullion: ‘The Time To Own Gold Is Now’

Gold’s prices have fluctuated due to a changing dollar, with recent extreme volatility underscoring its status as a safe-haven asset amid geopolitical events. Greg Weldon of Weldon Financial suggests that, with low current investment in gold and expectations of a weakening dollar and rising inflation, now might be an opportune time to invest in gold. He predicts a significant rise in gold prices if they cross the $2,060 threshold, given its inverse relationship with the dollar and real interest rates.