Gold

The bank has increased vaulting space as demand from private wealth and institutional clients grows

The uptick is also due to technical factors, as markets already largely priced in hawkish messaging

Traders now price in a 92% chance of the US central bank hiking rates

Gold-backed credit lines and refining power fundamentally change how macroeconomic pain is absorbed

Markets are betting Fed policymakers lift their benchmark rate to a 3.75% to 4% range

Dips should still draw buyers looking for an uncertainty hedge, says a market analyst at KCM Trade

Strong corporate earnings should provide support for Wall Street if borrowing costs rise, says analyst

Gold continued its rally in January, rising above US$5,500 an ounce to reach a new historical high having traded around the US$2,000 an ounce level in 2023. The rally was driven by the appearance of major global economic events, making gold lucrative as a form of hedge against inflation and currency devaluation.

This comes as expectations of a US rate hike strengthened