According to a study by the World Gold Council, the French bought 5.6 tons of gold coins and bars in 2022, equivalent to around 0.31 billion euros, which is a record high since 2011.
Gold is considered a safe haven in times of economic, stock market, and geopolitical uncertainty. However, the French are modest buyers compared to the Chinese, Americans, and especially the Germans, who bought 2.36 grams of gold per capita in 2022, almost eight times more than a French person. Since mid-July, gold has experienced a good rebound, driven by traditionally favorable seasonality in the summer and hopes for a Fed (US central bank) gradually less strict in the face of inflation.
However, the question is whether the Fed will fight inflation by quickly raising its direct interest rate or if it will adopt a more accommodating monetary policy in favor of gold. Ultimately, gold could benefit from a less restrictive central bank and real rates under pressure.