The French Far Right Rises; a Rush to Buy Gold in China
Jun 24, 2024
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The podcast discusses the rise of the far right in France and the potential political shift it could bring. It also explores the surge in gold demand in China, driven by economic uncertainties and market instability.
Far-right National Rally Party's rise in France signals political shift post-WWII.
Increased demand for gold in China driven by economic instability and diversification efforts.
Deep dives
Far-right Party on the Verge of Political Power in France
Following surprising European Union election results, French President Macron has called for new national elections, opening the possibility of the far-right National Rally Party taking political control in France. The party garnered significant support in the EU elections, raising concerns about the changing political landscape and potential impacts on the upcoming French elections. Macron faces challenges with a decline in popularity due to controversial policies, while issues like immigration and security contribute to the far-right's growing appeal. The prospect of extreme positions dominating the elections signals a shift in perceptions of political extremism in France.
Gold Demand Surges in China Amid Economic Uncertainty
A significant increase in gold purchases in China has been driven by economic concerns, with factors like a struggling economy, underperforming markets, and a devalued currency prompting a rush towards gold as a stable investment. Both retail investors and China's central bank have been actively acquiring gold, utilizing it not only as an investment but also as part of broader strategies to diversify assets and reduce dependence on the US dollar. Geopolitical tensions and the anticipated impact of US interest rate cuts further contribute to the sustained demand for gold, with projections indicating a potential surge in gold prices in the near future.
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Rise of the Far Right in France and Political Shifts
France will hold national elections soon and it appears the far right could take political power for the first time since World War II. This would represent a huge political shift in France. We hear from our correspondent in Paris.
And the price of gold shot up this spring, due in large part to increased demand for the precious metal in China. We find out what is driving that demand.
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