The gold price grew to cross the USD 1,750 an ounce mark on Thursday on several indicators that the yellow metal is once again in demand as a safe haven asset. According to a report by Kitco, after a pause in central bank gold buying last year, there are signs that demand for gold grows as Hungary tripled its gold reserves. Hungary's central bank increased its gold reserves to 94.5 metric tons from 31.5 tons, citing "long-term national and economic policy strategy objectives." This marked one of the most significant central bank gold purchases in decades. Exploits Discovery Corp. (CSE: NFLD) (OTC: RNRRF), NovaGold Resources Inc. (NYSE: NG), McEwen Mining Inc. (NYSE: MUX), Equinox Gold Corp. (NYSE: EQX), Gold Fields Ltd. (NYSE: GFI)
Typically, gold has played a role as an insurance against market disruption and as a haven asset. The Federal Reserve Jerome Powell indicated during the IMF and the World Bank Group's 2021 Spring Meetings that the Fed views the pace of global vaccinations as a risk to progress. "Our asset purchasers will continue until we see substantial progress towards our goal. We are looking for actual progress — inflation and indicators of maximum employment. We would look at global vaccination as a risk to progress we are making," Powell said. As a result of the pandemic and its implications, there is a need for a strong economic recovery, yet the recovery still remains uneven and incomplete according to the Fed.
