Governments are hoarding commodities beyond gold — and it’s fueling price swings, Goldman Sachs says

By Huileng Tan – Business Insider

Gold’s historic rally isn’t just about precious metals. It’s part of a broader shift in how governments and investors are treating commodities, according to Goldman Sachs.

Central bank buying has helped drive gold’s surge in recent years as governments seek to hedge geopolitical and financial risks. Now, similar “insurance”-style strategies are emerging across other commodity markets, analysts at Goldman Sachs wrote in a note on Tuesday.