Central banks aggressively buy gold
Andrew Neilor of the World Gold Council confirmed that gold retains its status as a safe haven despite initial pressures during crises, with geopolitical tensions continuing to impact its prices.
Translated by Qiyas from النهار — Original source
Andrew Naylor, Head of the Middle East and Public Policy at the World Gold Council, affirmed that gold continues to uphold its traditional role as a safe-haven asset, despite its volatile performance during recent periods of geopolitical tensions. He noted that a decline in the early stages of a crisis does not mean the yellow metal loses this status. Naylor explained that while geopolitical uncertainty acts as a supportive factor for gold prices, the initial phases of major crises sometimes witness selling pressure on the precious metal, as occurred during the global financial crisis in 2008 and 2009, when investors were forced to liquidate some of their assets, including gold, to raise cash liquidity. He pointed out that gold typically resumes its upward trajectory as crises persist and uncertainty grows, underscoring its enduring position as a safe haven during times of economic and political turmoil. He added that geopolitical tensions remain one of the key drivers of gold prices, alongside other monetary and economic factors influencing the decisions of investors and central banks. Gold prices have seen a sustained rise in recent days following consecutive declines triggered by the closure of the Strait of Hormuz and the impact of geopolitical events on the global economy.
