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WGC REPORT Central banks expect official sector gold holdings to increase against a  backdrop of geopolitical and economic uncertainty. 

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More than nine in ten (95%) reserve managers indicated that they  expect central banks to continue increasing their gold holdings in the next 12 months,  according to new 2025 data released by the World Gold Council today.1 This is a record  high since it was first tracked in the 2019 survey and represents a 17% increase from the  2024 findings. 

The 2025 Central Banks Gold Reserves (CBGR) survey, which collected data from a record  73 of the world’s central banks, also finds that nearly 43% of central banks plan to add to  their own gold reserves within the next year. Reserve managers’ favourable view of gold  persists even in the face of record-high gold prices2 and 15 successive years of central  bank gold buying. 

Gold continues to be used as a safe-haven asset to help mitigate risks as ongoing  economic and geopolitical uncertainty continues to weigh on reserve managers. The top  three current motivations for holding the asset have shifted to its long-term store of value  (80%), its role as an effective portfolio diversifier (81%), and its performance in times of  crisis (85%). 

Central banks in emerging markets and developing economies (EMDE) have once again  maintained their positive outlook for gold’s future share in reserve portfolios. Notably, 28  out of 58 (48%) EMDE respondents thought that their own gold reserves would increase in  the next 12 months, compared to 3 out of 14 (21%) of advanced economy respondents,  more than last year. Although interest rate levels remained a key component of both  groups’ motivators for holding gold, inflation (84%) and the geopolitical situation (81%)  were top of mind for EMDEs, while 67% and 60% of advanced economy respondents felt  the same.  

Notably, more central banks are increasingly storing gold domestically: 59% said they  have gold in domestic storage, up from 41% in 2024. Additionally, most respondents (73%) 

see moderately or significantly lower US dollar holdings within global reserves over the  next five years. However, respondents also believe that other currencies, such as the euro  and renminbi, as well as gold, will increase their share over the same period. 

Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific (ex-China),  commented:  

“After eight years of conducting this survey, we have reached an important milestone:  nearly half of the central bank respondents intend to increase their own gold holdings in  the coming year. This is remarkable, especially considering how many record-high prices  we’ve hit so far in 2025. Notably, this reflects the current global financial and geopolitical  environments. Gold remains a strategic asset as the world faces uncertainty and tumult.  Central banks are concerned about interest rates, inflation, and instability – all reasons to  turn to gold to mitigate risk.” 

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International News

Gold prices climbed above $4,250 ahead US ISM Manufacturing PMI release

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US spot Gold prices climbed above $4,250 early Monday, touching a six-week high as investors turned cautious ahead of the upcoming US ISM Manufacturing PMI release. The yellow metal is poised for further upside momentum if it secures a sustained daily close above the crucial $4,250 resistance level.

The US Dollar opened December on a softer note, pressured by rising expectations that the Federal Reserve may announce a rate cut next week. Growing market confidence in easing monetary conditions has boosted the appeal of non-yielding assets such as gold.

Analysts note that a decisive break and close above $4,250 could reinforce bullish sentiment and pave the way for an extended rally in the days ahead. As global markets await fresh cues from the US economic calendar, gold continues to benefit from a favorable macroeconomic backdrop and robust safe-haven demand.

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