Gold has surpassed the euro to become the second-most important global reserve asset for central banks, driven by heightened geopolitical uncertainty and a surge in demand, according to a report cited by the Financial Times.
The European Central Bank (ECB) revealed that gold accounted for 20% of official global reserves in 2023, overtaking the euro’s 16%. The U.S. dollar remains the dominant reserve currency, representing 46% of global holdings.
The shift underscores the growing appeal of gold as a safe-haven asset amid global instability. According to ECB data, central banks around the world continued to buy gold at a record pace last year, collectively purchasing more than 1,000 metric tons—equivalent to approximately one-fifth of the world’s annual gold production.
This marks the third consecutive year of such high-volume acquisitions, reflecting a strategic diversification away from traditional currencies.
In related economic news, China’s Producer Price Index (PPI) for May fell 3.3% year-on-year, below both the previous figure of -2.7% and the market forecast of -3.2%.
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