A Quarter of Global Central Banks Plan To Increase Gold Reserves As They Grow More Pessimistic on US Dollar: Report – The Daily Hodl

New data shows nearly a quarter of all central banks are looking to hedge against the US dollar by accumulating more gold.

According to a survey by the World Gold Council, a market development organization for the gold industry, central banks around the world are more pessimistic on the dollar than they have been in the past, and consequentially plan to grow their gold reserves.

“Following a historical high level of central bank gold buying, gold continues to be viewed favorably by central banks. Our 2023 survey revealed that 24% of central banks intend to increase their holding reserves in the next 12 months.

Furthermore, central banks’ views towards the future role of the US dollar were more pessimistic than in previous surveys. By contrast, their views towards gold’s future role grew more optimistic, with 62% saying that gold will have a greater share of total reserves compared to 46% last year.”

Additionally, the survey finds that seven out of 10 central banks, 10% more than last year, believe that gold reserves in general will increase over the next 12 months.

A recent report from banking giant UBS forecasted that central banks would accumulate 700 metric tons of gold worth $48.74 billion this year alone.

According to the financial titan, central banks are likely to continue stockpiling gold in the coming months due to persistent inflation and geopolitical concerns.

“Last year marked the 13th consecutive year of net gold purchases by global central banks and the highest level of annual demand on record dating back to 1950.

At 1,078 metric tons in 2022, central banks’ buying of gold more than doubled from 450 metric tons in 2021. Based on the 1Q23 data from the World Gold Council, central banks are on track to buy around 700 metric tons of gold this year, much higher than the average since 2010 of below 500 metric tons.

We think this trend of central bank buying is likely to continue amid heightened geopolitical risks and elevated inflation.” 

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• Source: https://dailyhodl.com/2023/06/04/a-quarter-of-global-central-banks-plan-to-increase-gold-reserves-as-they-grow-more-pessimistic-over-us-dollar-report/