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25 April 2024
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China and Russia Push Gold’s Record Rally Towards $2,280

Gold’s price has recently touched an all-time high, rallying past $2200 in valuation. The record price spike has been fueling aggressive debates on whether any misalignment has been noted in the global economic structure, which is blowing gold prices to new highs. 

With the gradual erosion of the USD and calls to support regional currencies, investor sentiment is now supporting gold, driving its price ahead. However, the budding relationship between China and Russia has also steadily contributed to the yellow metal’s recent value surge. 

Also Read: Gold Prices: Can April be Gold’s Best Month Yet? This Analyst Thinks So! 

Russia and China are Fueling Gold’s Prices

Gold bars
Image Source: Unsplash

Over the years, Russia and China have been growing their corporate businesses by joining hands to forge crucial alliances. Similarly, both nations have echoed a similar stance against the USD by trying to float ideas to eliminate its supremacy on a global scale. 

The trend of de-dollarization has been further intensified by China and Russia, helping investors pivot towards stabler returns such as hoarding the precious yellow metal. With an extensive list of sanctions imposed on Russia, the nation has long been searching for alternate ways to maximize profits, with gold seeming to be an ideal alternative for the country to stabilize its economy. 

“Divergent strength in the metal is my takeaway due to the shift in the world order and the “unlimited friendship” between Presidents Xi Jinping and Vladimir Putin,” analysts later shared

With the concept of de-dollarization floating in the middle, the idea further assisted multiple regions’ currencies to rise to the occasion. With China conducting trade in Yuan, other nations also followed suit, leading them to stock up on gold to bolster their currency prices. 

Furthermore, the ongoing shift in world order has had many repercussions. The sanctions imposed on Russia have left a stark impression on the European economy. This has resulted in the loss of cheap fossil fuels and energy, compelling them to explore gold as an alternative. 

Also Read: Currency Wars: Declining USD Bolsters Prospects for Gold and Silver

Gold to Touch a New ATH Soon. 

With the precious metal skyrocketing to new highs, analysts on X have predicted that the gold is poised to gain considerable momentum soon. 

“XAU is repricing at a neck-breaking pace, implying that Wall Street and City of London banksters have lost control over the gold price, which is now being dominated by BRICS physical purchases. The implications are severe. We are in the middle (or beginning?) of the most intense currency war since before the 1971 gold departure and transition to the $-debt Empire.” One analyst noted. 

Another analyst, “Game of Trades,” shared that gold will soon hit a new ATH of $2700 given that it continues to leverage the current market hype. 

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