The fears of the second wave of inflation and the budget deficit supports a standard of gold

After 2024, the star and the first distinguished month of 2025, the world again caught the gold insect. Geopolitical tensions, rising tariff threats and inflation concerns have led to the demand for physical minerals, causing disturbances, delays and sale pending.

South Korea is the latest country to counter such a challenge. According to to Bloomberg, and Korea mining and security printingAnd a state of state -owned currency, hung sales.

Earlier this month, the Gold rate in London increased to 10 % annually, much higher than 2-3 % typical. The deficiency of the width caused England Bank To announce Delaying multi -week deliveryWhich prompted gold to circulate by deducting more than $ 5 an ounce compared to the price of spots in London.

However, with institutions rushing to transfer gold abroad, the logistical challenge of converting 400 ounces in London added to smaller counterparts from Comex to the delay. The rental rates also increased to 4.7 %, as central banks benefited from demand by lending to gold in higher installments.

In 2024, these financial institutions added 1045 tons of gold to their reserves per World Gold Council. Paric Goldchief executive officer Mark Presto He pointed out that “gold has become a backup currency for central banks” during the pioneering network broadcast of the Gold Mine 4 profits.

Besides the short -term width restrictions, the second wave fear of inflation adds to the attractiveness of gold. The consumer price index came 3 % today more hot than expected, which represents the fourth consecutive increase in annual inflation.

While another wave of global inflation is not inevitable, analysts are in Ji search I think inflation will be Structurally And the most fluctuations in the coming years. However, they admit that the past is not an ideal measure for the future, given the different environment that precedes the inflation period, with two periods and oil shocks.

However, the local economy structure also seemed completely different at the time. During the 1970s, the government ran annually Budget deficit by 2.7 %. In 2024, the deficit was 6.4 %, while the Congress Budget Office witnessed 6.5 % in 2025. To connect this hole, the government needs to sell bonds and if the federal reserve is Jupiter, or through programs such as quantitative mitigation, the money width grows, usually What deals with inflation.

Read after thatPolitical geography and resource nationalism suffocating the supply of goods

Photo: Shutterstock