Reuters experts suggest gold may be included in the list of “critical minerals” amid Donald Trump's uncertain policies and rapidly changing trade conditions. Unlike copper or lithium, the yellow metal does not have similar industrial value. Investors typically use it as a tool for inflation hedging or protection against the volatile market environment.
Since Trump's election victory in the US, gold has appreciated by more than 32%. The record high was hit in late April near $3,500 per ounce, Reuters notes. Even though gold prices remain heavily dependent on news background, experts view the overall trend positively.
Last month, the World Gold Council surveyed 73 central banks about their attitude toward the safe-haven asset. 95% of them expect to increase their gold reserves within the next 12 months.
Another important trend in recent years has been central banks' aim to repatriate a significant portion of their reserves back to their home countries, indicating declining confidence in US storages and the Trump administration's policies, the news agency concludes.