Central banks have sharply increased their gold purchases in recent years, signaling rising demand for the precious metal as a safeguard against global economic and geopolitical risks.
According to the World Gold Council (WGC), central banks have accumulated over 1,000 tonnes of gold annually for each of the last three years — a substantial rise from the 400 to 500 tonnes per year average seen during the previous decade.
This surge comes amid concerns over dollar weakness, trade uncertainties, and persistent inflation in the US and other developed nations. Gold, long viewed as a “fear gauge” asset, remains a trusted portfolio hedge during turbulent times.
On June 24, 2024, gold traded at $2,320 per ounce and has since risen to $3,378 per ounce as of yesterday (source: BullionVault).
The WGC’s 2025 Central Bank Gold Reserves (CBGR) survey, conducted between February and May with 73 respondents — the highest participation since the survey began eight years ago — shows strong confidence in gold. An overwhelming 95% of central banks expect their gold reserves to increase over the next year.
Echoing this trend, ABN AMRO highlighted a “new regime” in the gold market driven by a global “de-dollarisation” movement. China’s central bank (PBoC) has notably boosted its gold holdings at the expense of US dollar reserves amid concerns about “dollar weaponisation.”
Christophe Boucher, CIO at ABN AMRO Investment Solutions, explained that foreign holdings of the US dollar have fallen from over 70% a decade ago to 57% today. He also noted uncertainty around the safety of US Treasuries, citing concerns over proposed US withholding taxes that have unsettled investors.
Despite these shifts, Boucher cautioned that any fundamental change to the dollar’s global dominance will take time, given the entrenched nature of the international monetary system.
Overall, the WGC report and industry commentary reflect a growing shift in how gold is perceived by central banks and investors alike — increasingly seen as a vital asset amid ongoing global uncertainties.
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