(MENAFN- The Rio Times) As Middle East tensions escalate, the allure of gold has soared, with its price reaching a peak of $2,400.67 per ounce. This significant 1.2% rise highlights a surging demand for stability.
Globally, the United States holds the largest gold reserves, totaling 8,133 tons, according to Trading Economics.
It is followed by Germany with 3,353 tons, Italy with 2,452 tons, France with 2,437 tons, and Russia with 2,333 tons.
In Latin America, optimism emerges despite smaller reserves. Venezuela leads with 161 tons, Brazil follows with 130 tons, and Mexico holds 120 tons.
Argentina, Bolivia, Peru, Ecuador, Paraguay, Guatemala, and Colombia follow, with reserves of 61.74, 34.79, 34.67, 33.78, 8.19, 6.89, and 4.68 tons, respectively, rounding out the top ten in the region.
Michael Ortegón, a dean at Uninpahu, emphasizes gold's critical role as a safety net within the region's fractional reserve banking system.
Although Colombia's reserves constitute only 1.5% of its total, they remain vital during financial crises.
In Colombia, gold has a limited yet crucial economic role, primarily supporting market speculation rather than foundational economic stability.
Laura Lizarazo, a global risk analyst, notes that gold reserves stabilize economies during natural disasters, conflicts, or economic crises.
This becomes crucial as the global economy shifts away from the U.S. dollar due to ongoing trade tensions and geopolitical conflicts.
Recent market trends show gold's rising influence. Spot gold 's increase to $2,396.11 an ounce marks its highest gain since early 2023.
Silver and other precious metals are also climbing, underscoring gold's role as a safe haven amid a weakening dollar.
Looking ahead, ING predicts gold may reach new highs in 2024, supported by potential Federal Reserve rate cuts. This expectation solidifies gold's importance in providing financial security.
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