Central Banks Pile into Gold Amid Geopolitical Risk and Dollar Dominance

Central banks are piling up gold due to growing concerns over geopolitical risk. The ongoing war between the US and Iran has led to increased uncertainty, making gold a safe-haven asset.

The weaponization of the dollar is another factor driving central bank gold accumulation. Countries are becoming wary of their dependence on the US currency after seeing how it was used as a tool in the conflict with Russia over Ukraine.

US fiscal malfeasance is also contributing to the trend. The country's national debt is nearing $40 trillion, and the budget deficit has been rising, causing investors to question the value of holding US Treasury bonds.

Regime uncertainty is another key factor, with markets becoming increasingly unpredictable due to trade tensions and questions over Federal Reserve independence.