While all that glitters may not be gold, gold has certainly been bringing the bling lately.
U.S. gold futures were trading near their all-time high on Thursday, down just 0.17 percent to $2,311.20 an ounce from the day before. Spot gold prices were also near the all-time high at $2,304.90.
Central banks have been adding gold to their holdings in recent months, driving up demand for the metal.
The central bank of China has been particularly active in the market, according to reports. Retail investors in China have followed suit by increasing their gold purchases, according to analysts at Bank of America. Some of the retail interest may be due to investors looking for safe-haven alternatives to Chinese stocks and housing.
On Wednesday, Fed chairman Jerome Powell said that Fed officials continue to anticipate cutting rates this year. Some investors may be purchasing gold as a hedge against higher inflation that rate cuts could trigger.
Gold prices are up around 11.2 percent this year, slightly ahead of the S&P 500’s 10 percent gain. The price of oil is up 18 percent. Government bonds and investment-grade debt securities are down for the year. The price of Bitcoin is up more than 50 percent since the start of the year.
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