Central banks plan record gold purchases amid dollar concerns
CENTRAL banks expect to maintain record-breaking gold purchasing patterns this year whilst anticipating a decline in US dollar holdings over the next five years, according to new survey findings from the World Gold Council.The Financial Times reported on Tuesday geopolitical tensions, sanctions risks, and concerns about America’s currency have driven global monetary authorities to unprecedented bullion acquisitions. Gold has recently surpassed the euro as the world’s second-largest reserve asset, trailing only the US dollar.Bullion prices have surged 30% since January and doubled over two years as global uncertainty and market volatility fuel investor demand. A record 95% of survey respondents expect central banks’ gold holdings to increase over the next 12 months—the highest level since polling began in 2018. Meanwhile, three-quarters anticipate declining dollar reserves within five years.More than 70 central banks participated in the industry survey. Shaokai Fan of the WGC told the Financial Times: “The sentiment is very strong, certainly there’s more confidence among central banks that the entire universe of central banks is going to buy.”Geopolitical tensions are reshaping storage preferences, with some banks planning increased domestic bullion storage rather than relying on London and New York repositories. Last year, India repatriated over 100 tons of gold from the Bank of England, whilst Nigeria also retrieved holdings domestically.Seven per cent of respondents plan increased domestic storage—the highest since Covid-19, said the newspaper. Recent US government comments have heightened foreign concerns about American-stored gold security, particularly after President Trump questioned potential Fort Knox losses in February, it said.Central banks accelerated gold purchases following Russia’s 2022 Ukraine invasion and subsequent US financial sanctions, prompting emerging markets to diversify from dollar reserves more rapidly.The post Central banks plan record gold purchases amid dollar concerns appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
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