(MENAFN- Trend News Agency) U.S., WASHINGTON, April 16. The InternationalMonetary Fund (IMF) sees two drivers of the record-high goldprices, said Tobias Adrian, Financial Counselor and Director,Monetary and Capital Markets Department, IMF during a briefing onthe Global Financial Stability Report held as part of the IMFSpring Meetings in Washington, Trend reports.
The gold spot price hit another record high, touching $2,313.50per ounce on April 3.
"Indeed the gold price has reached historically high levels. Wesee two drivers here. One is certainly related to some reallocationof reserve asset managers towards commodities that include gold,and that could be one contributor to those valuations. The secondone is of course, speculative behavior. Volatility in financialmarkets is fairly compressed. But of course, deeper economicuncertainty still remains fairly high, geopolitical uncertaintyremains high. And gold is oftentimes viewed as a kind of hedgeagainst those broader geopolitical risks," he explained.
As for bitcoin, which set a new record of $73,750, with a marketcapitalization reaching $1.44 trillion on March 14, 2024, Adriannoted that it is difficult to pin down the fundamental drivers ofBitcoin valuations.
"Bitcoin has fluctuated, but also reached historical highsearlier this year. In terms of Bitcoin valuations. One technicalfactor that has played a role is the development of exchange tradedproducts (ETP) that have been allowed in the US. When you look atit as allocations to bitcoin, since the beginning of the year,there has certainly been a substantial inflow in those investmentsthrough the ETPs," he added.
The Spring Meetings of the International Monetary Fund and theWorld Bank Group kicked off on April 15.
The main ministerial meetings and events will take place April17-19 with other events and activities taking place during theweek, April 15-20.
At the heart of the gathering are meetings of the jointDevelopment Committee and the IMF's International Monetary andFinancial Committee, which discuss progress on the work of theWorld Bank Group and the IMF.
The Spring Meetings bring together central bankers, ministers offinance and development, parliamentarians, private sectorexecutives, representatives from civil society organizations andacademics to discuss issues of global concern, including the worldeconomic outlook, poverty eradication, economic development, andaid effectiveness.
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