Rich countries plan to buy more gold despite record price

finance
Created 6/18/2024
Updated 6/18/2024

Central banks in advanced economies anticipate an increased share of gold in global reserves, reducing the dominance of the US dollar. Nearly 60% of these banks expect a rise in gold holdings over the next five years, with 13% planning to increase their gold reserves in the coming year. This shift follows the trend set by emerging markets, which have been significant gold purchasers since the 2008 financial crisis. The demand for gold, despite its rising price, is driven by its long-term value, crisis performance, and diversification benefits. US sanctions on Russia have further spurred non-western banks to seek bullion as a stable asset.

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