Gold's 18% year-to-date rally has confounded traditional rate-correlation models. The more durable explanation is a structural shift in central-bank reserve allocation: EM and BRICS central banks have taken their combined gold share from 8% to 14% of reserves in five years, and the trend shows no sign of easing.
This is not a speculative bid. It is a slow, deliberate diversification away from USD-denominated assets. Whether it persists depends less on Fed policy than on the geopolitical temperature of the next decade.
Not financial advice
This article is reported for educational purposes only. It is not a recommendation to buy, sell, or hold any security. Markets carry risk — you can lose money. Do your own research and consult a licensed professional before acting.