Over the past year gold has behaved unusually — reaching new highs while breaking away from its traditional influencers: interest rates, inflation, the dollar. The steady climb points to something deeper: a behavioural shift among countries like China and India that deserves attention.
A 37% year, and a steady one
Gold soared from $1,985 USD to $2,720 USD per ounce by October 2024 — a gain of over 37%. Unlike most assets, the rise was steady, with even minor dips attracting buyers, despite shifting policy rates, volatile U.S. yields, falling inflation and currency swings.
Central banks are quietly changing the game
Foreign central banks have been consistent gold buyers, helping drive the price up. The purchases suggest a desire to diversify away from the U.S. dollar — even after decades of dollar supremacy — alongside the growing popularity of alternative payment systems and cryptocurrencies.
Why the shift?
- Declining trust in the U.S. presence on the global stage
- Conflicts and sanctions that made dollar reserves feel political
- A preference for reserves no one else can freeze or print
The bigger picture: when central banks treat gold as insurance against the dollar itself, the metal’s price stops being just an economic signal — it becomes a geopolitical one.
A strong global gold market means strong local offers. See what your gold is worth in today’s CAD prices.
