China s insatiable demand for gold, coupled with the launch of the Shanghai International Energy Exchange oil futures denominated in yuan, signals a shift in the global monetary system.
In the first week of 2023, gold has increased by 2.36% against the U.S. dollar. Over the past 65 days, gold has risen by 14.55% and silver has risen by 22.31% against the U.S. dollar since November 3, 2022.
The buying surge appears to be a response to two developments––the freezing of the Russian central bank’s dollar holdings after the invasion in Ukraine, and the development of uncertainty over the stability of US financial markets and its political system.