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Key Takeaways
- Central banks have added record amounts of gold to their reserves over the past two years on macroeconomic and geopolitical concerns.
- The World Gold Council said its survey of central banks showed 29% of respondents said they plan to boost their gold reserves in the next 12 months, the highest level since the poll began in 2018.
- Gold prices have set numerous records this year as the precious metal is seen as a so-called “safe haven” in turbulent times.
Macroeconomic pressures and geopolitical tensions are leading central banks to stock up on gold.
The World Gold Council reported that last year, central banks added 1,037 tonnes to their portfolios, second only to the record of 1,082 tonnes set in 2022.
And the interest in the precious metal continues. According to the group’s 2024 Central Bank Gold Reserves (CBGR) survey, 29% of respondents said they plan to boost their gold reserves in the next 12 months, the highest level since the poll began in 2018.
Central Banks Seek ‘More Preferred Strategic Level of Gold Holdings’
The Council explained that the chief motivation for the planned purchases was “a desire to rebalance to a more preferred strategic level of gold holdings, domestic gold production, and financial market concerns including higher crisis risks and rising inflation.”
Acquisitions by central banks are among the reasons why gold prices have skyrocketed, setting numerous record highs recently. Since March, the spot price per ounce has surpassed $2,100, $2,200, $2,300, and $2,400 for the first time. It hit an all-time high last month, and despite a pullback since, it remains above $2,300.
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