Gold Near Record High: Central Banks & Retail Investors Pile into Commodities

Core Viewpoint - The gold market is experiencing a significant upward trend, with prices up 65% year-to-date, driven by liquidity from global deficit spending and central bank buying, particularly from countries like China [2][3][5]. Group 1: Price Action and Drivers - Gold is approaching all-time highs, with a notable increase in price attributed to liquidity in the market and aggressive central bank buying [2][3]. - The weakness of the dollar has positively impacted gold prices, and this trend is expected to continue into 2026 [3]. - Central banks are likely to continue their buying practices, influenced by global economic concerns and the ongoing trend of "de-dollarization" [4][5]. Group 2: Market Participation and Trends - There is a shift in investment focus from commodities to gold equities, with some mining companies seeing over 100% performance increases [7][8]. - Retail participation in the gold market is increasing, with a notable rise in interest in gold equities and the GLD ETF [9][10]. - Silver is also experiencing a strong performance, often seen as a precursor to gold in a commodities bull market, indicating broader retail engagement in precious metals [12][13].