The gold price rose as high as US$2,366 per ounce on Thursday (June 20), but had fallen back to the US$2,325 level by Friday (June 21) morning, looking set to end the week relatively flat.
The WGC notes that the main reasons central banks hold gold are as a long-term store of value or inflation hedge, for its performance during times of crisis, as an effective portfolio diversifier and because it has no default risk.
In previous years, gold’s historical position has been a bigger driver of their purchases.
Natural Resources Canada facilitated the new deal, reinforcing the Trudeau government’s efforts to stop Chinese firms from getting too deeply involved in Canada’s critical minerals sector. China is the largest producer of rare earths by far, and its dominance of the industry has pushed other countries to diversify their supply chains.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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