In the context of the global central bank's substantial increase in gold reserves, the future prospect of gold has also become bleak, because gold no longer has monetary significance, nor is it an investment product, nor is it a hedging tool. At present, central banks are constantly increasing their reserves and controlling interest rates to prevent inflation from accelerating, thus maintaining their monetary status. Due to the possibility of deflation caused by economic recession and low interest rate environment, the US central bank sold nearly $400 billion in assets to bank lending institutions in the fourth quarter of last year to support corporate bond financing, thus reducing the size of its investment portfolio and the demand space needed for pricing in gold from other countries and maintaining its monetary status.
In recent years, with the instability of geopolitical situation, the investment demand of gold has declined, and the price of gold has also begun to fall. China, the largest gold importer in the United States, has also significantly reduced its holdings of gold in the past two years. At present, China's share in the global gold market is 1 1.8%. Although some analysts believe that this is the reason for the strength of the US dollar index, it is actually a bigger reason. For the United States, gold is not a particularly stable asset, but the recent series in the United States? Black swan incident? In addition to Trump, two other countries have been influenced by themselves. The first is Iran's oil exports. Iran has repeatedly said that it is exploiting more than half of the country's crude oil. However, according to media reports, after the terrorist attacks in the region in June+10/October last year, the local crude oil export volume dropped sharply.
Lagarde said at the meeting that although the global economy is still facing downward pressure, the current situation shows that downward pressure is fading.