Greater than eight in ten, or 81%, of respondents to the 2024 Central Banks Gold Reserves survey stated they count on reserve managers to proceed to extend their gold holdings within the subsequent 12 months. This information, launched by the World Gold Council, displays the very best confidence stage recorded for the reason that survey started in 2019.
Regardless of excessive gold costs and two successive years of report central financial institution buying, almost 30% of central banks plan so as to add to their very own gold reserves inside the subsequent yr. This pattern highlights a persistent beneficial view of gold amongst reserve managers, who see the valuable metallic as a hedge towards political and financial uncertainty.
Additional, though seven in ten, or 71%, nonetheless view gold’s legacy as a purpose to carry it, different causes have surpassed it this yr.
The highest three causes to carry gold now embrace gold’s long-term worth at 88%, efficiency throughout disaster at 82%, and its position as an efficient portfolio diversifier at 76% of respondents.
Moreover, central banks in rising markets and creating economies (EMDE) maintained their constructive outlook for gold’s future share in reserves portfolios.
Notably, EMDE central banks have been joined by superior economic system central banks which now view gold extra positively. Greater than half, or 57%, of superior economic system central banks stated gold would account for a better proportion of reserves 5 years from now, which is a big improve in comparison with 2023 when 38% of respondents indicated the identical view.
Superior economic system central banks have additionally grow to be extra pessimistic of their outlook for the US greenback’s share of worldwide reserves, a view which has persistently been extra outstanding amongst EMDEs, the World Gold Council stated.
Greater than half, or 56%, of superior economic system respondents consider the US greenback’s share of worldwide reserves will fall, which is up 10 share factors year-on-year, whereas 64% of EMDE respondents share the identical view.
“Extraordinary market stress, unprecedented financial uncertainty and political upheavals world wide have saved gold entrance of thoughts for central banks. Many of those establishments have grow to be extra conscious of the asset’s worth as a approach to handle dangers and diversify their portfolios,” stated World Gold Council central banks world head and Asia-Pacific head Shaokai Fan.
“What has been exceptional is that, regardless of report demand from the official sector previously two years, coupled with climbing gold costs, many reserve managers nonetheless preserve their enthusiasm for gold. Whereas influences like value might briefly decelerate purchases within the close to time period, the broader pattern stays in place as a result of managers recognise gold’s position as a strategic asset within the face of ongoing uncertainty,” he stated.
