Central Banks plan to boost gold reserves within a year: Survey

Gold bars

The World Gold Council's annual survey revealed that more central banks plan to increase their gold reserves within a year, despite the ongoing macroeconomic and political uncertainties and rising gold prices.

The survey, conducted from Feb. 19 to April 30, showed that 29% of central banks expect to boost their gold reserves in the next twelve months. This is the highest level since the survey began in 2018.

Key reasons for these increases include long-term value retention, hedging against inflation, performance during crises, and effective portfolio diversification.

Shaokai Fan, Head of Central Banks at the World Gold Council, stated: "Despite record demand from the official sector in the past two years and rising gold prices, many reserve managers remain enthusiastic about the yellow metal."

The survey also found that about 60% of central banks in wealthy countries believe the share of gold in global reserves will rise over the next five years.

In the past two years, central banks' demand for gold has risen as some countries diversified their foreign currency reserves. This demand has driven gold prices up this year from March to May 20, reaching record levels.

In 2023, central banks added 1,037 tons of gold, the second-highest annual purchase rate in history, following a record 1,082 tons in 2022.