The price of gold is down about $50 an ounce and silver is down about $1-$2/oz in the last week or so. We were told that the prices would go up since Biden banned Russian gold. What's going on?
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While central banks’ purchase of gold otherwise traditionally pushed market prices up, BofA underlined that there have been signs of fading demand.
First is the pandemic, which caused a fall in world central banks’ demand for gold. It decreased by nearly 60 percent in 2020, according to the World Gold Council(WGC).
In the fourth quarter of 2020 alone, central banks bought a net of 44.8 tonnes of gold, while it was about 140.7 tonnes a year before that.
Gold’s underperformance over the year led to an increase in reserve portfolios, which led some central banks to spot “an opportune time to obtain liquidity to support their struggling economies,” during the pandemic.
For example, seven central banks around the world decreased their gold reserves over the course of 2020, according to the World Gold Council. Source:https://www.trtworld.com/magazine/why-are-gold-prices-falling-44331