Central banks on buying spree, strong retail demand – what's fuelling the big gold price rally

Apart from central banks, the attractiveness of gold for households has also seen a rise. Elevated inflation, uncertainty in the financial market and lack of attractive investment options have triggered a rise in demand for gold by households. While the surge in gold demand could be partly attributed to its safe haven appeal in times of economic and political turmoil, the ability of the United States to use their currency to impose sanctions has prompted a lot of these banks to diversify their reserves away from dollars. Gold prices have risen by a steep 15 percent in the last three…