Central Banks Anticipate Boosting Gold Holdings

Central banks around the globe are expected to increase their gold holdings in the coming months, a shift that could potentially elevate gold prices.

According to the World Gold Council’s annual survey, which gathered responses from 70 central bankers, 29% indicated plans to raise their gold reserves within the next year. This marks the highest level of expected increases since the survey’s inception in 2018.

In the previous year, central banks recorded the second-highest volume of gold acquisitions, totaling 1,037 tons. The record peak was set in 2022, with central banks purchasing 1,082 tons of gold.

The World Gold Council attributes this anticipated increase in purchases to ongoing concerns regarding geopolitical instability and persistent inflation.

Earlier in the year, gold prices peaked at a record $2,439.98 per ounce, significantly driven by central bank acquisitions.

The latest report also revealed that nearly two-thirds (67%) of central bankers surveyed expect the proportion of gold reserves held in U.S. dollars to decrease over the next five years.

As of now, gold is trading at approximately $2,331.50 per ounce.