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Khaleej Times
9 hours ago
- Business
- Khaleej Times
Central bank gold buying to continue amid global uncertainty
As the world becomes increasingly volatile and unpredictable, gold's safety, liquidity and return characteristics – the three key investment objectives for central banks – have risen in importance. Central banks continue to recognise the benefits of an allocation to gold, and indicate that their demand for gold will likely remain healthy for the foreseeable future. The World Gold Council's 2025 Central Bank Gold Reserves (CBGR) survey, conducted between February 25 and May 20, helps shine a light on the continued importance of gold reserve management in these challenging times. Central banks have accumulated over 1,000 tonnes of gold in each of the last three years, up significantly from the 400-500 tonne average over the preceding decade. This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers and investors alike. Central banks see gold making up a growing share of their reserve portfolios. Seventy six of respondents believe that gold will hold a (moderately or significantly) higher share of total reserves five years from now, up from 69 per cent last year. Responses were also fairly consistent between central banks in advanced economies and EMDE (emerging markets and developing economies), with the majority anticipating that the proportion of gold held as total reserves would be moderately higher in five years. Respondents were less sanguine on the US dollar. While it maintains its position as the dominant global reserve currency, data from the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) shows that its share has been on a gradual decline. And respondents believe that this trend will continue, with 73% expecting its share to be lower five years from now. Both advanced economy and EMDE responses were aligned in this view. A record 95 per cent of respondents believe that official gold reserves will continue to increase, up from 81 per cent last year. 'This sentiment was again consistent across both advanced economy and EMDE respondents. This finding is particularly notable given the colossal gold accumulation among central banks over recent years,' the global body said in a statement. In addition, 43 per cent of respondents also thought that their own institution's gold reserves would rise over the next year, up from 29 per cent in 2024 and marking a new record high. 'But here we see a divergence in responses, with EMDE banks more inclined to add gold than their advanced economy counterparts. Nearly half of EMDE respondents thought that their own gold reserves would increase in the next 12 months, notably more than advanced economy respondents,' the WGC said. Taken together, these findings clearly highlight that gold sentiment within the central banking community remains positive. Expectations point to continued gold buying over the next 12 months, reflecting sustained confidence in gold's strategic role amid evolving geopolitical and macroeconomic dynamics. Central banks increasingly view gold as an important strategic asset within their reserve portfolios. Ongoing economic and geopolitical uncertainty continues to weigh on reserve managers, as this year's findings highlight. Concerns over the inflation outlook and potential trade conflicts, particularly amongst EMDE banks, show that diversification and risk mitigation continue to be key drivers of strategic reserve management decisions. And while there are divergences between advanced economy and EMDE central banks on some aspects, they share a common confidence in gold's role as a reliable store of wealth and a key component of long-term reserve management strategies, the WGC noted.
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Business Standard
9 hours ago
- Business
- Business Standard
Central banks bet big on gold as reserves surge past 1,000 tonnes again
Central banks worldwide have added over 1,000 tonnes of gold annually for the third consecutive year, according to the 2025 Central Bank Gold Reserves (CBGR) survey. This sustained surge in gold accumulation marks a significant departure from the decade-long average of 400-500 tonnes, signaling pivot in reserve management amidst deepening geopolitical and economic uncertainty. The World Gold Council's latest survey – the most comprehensive since its inception eight years ago – collected responses from 73 central banks between 25 February and 20 May, reflecting the growing engagement of monetary authorities with the yellow metal. "Gold's performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year," said the World Gold Council in its report. Gold's Strategic Appeal Strengthens According to the 2025 findings, a record 43% of central banks expect to increase their gold reserves over the next 12 months, while none anticipate reducing them. An overwhelming 95% believe global central bank gold holdings will continue to grow during the same period. Key reasons behind this bullish outlook include gold's resilience during economic shocks, its inflation-hedging capabilities, and its continued effectiveness as a diversifier in increasingly complex portfolios. Central banks consistently cite gold's safe-haven appeal—especially during volatile market periods—as a key reason for its rising allocation. Shift Away from the US Dollar? Another important trend observed in the survey is a projected decline in the dominance of the US dollar in global reserves. Around 73% of respondents anticipate moderate to significantly lower dollar holdings in the next five years, with a corresponding increase in euro, renminbi, and gold allocations. This shift reflects both macroeconomic realignments and a growing desire among emerging economies to diversify away from traditional Western reserve currencies. For many, gold provides a neutral and universally accepted store of value, free from the geopolitical strings often attached to fiat assets. Gold Reserve Management Becoming More Active The number of central banks actively managing their gold reserves increased from 37% in 2024 to 44% in 2025, with risk management emerging as a more prominent driver than tactical trading. This signals a more hands-on approach to gold allocation, with institutions seeking not just safety but also stability and performance from their gold holdings. In terms of storage, the Bank of England remains the top vaulting choice, preferred by 64% of respondents. However, there's been a notable rise in domestic storage: 59% of central banks now store at least some of their gold at home, up from 41% in 2024. Yet only 7% plan to increase domestic storage in the coming year, suggesting most institutions are still content with current arrangements.
Time of India
10 hours ago
- Business
- Time of India
Betting on gold! Central banks around the world to continue buying gold this year; holdings to see big increase
Gold retains its position as a reliable protective asset, helping to minimise risks during persistent economic and geopolitical instability. (AI image) Gold continues to be a favourite for central banks! Amidst rising global economic uncertainties and geopolitical tensions, central banks around the world will continue to stock up on gold, says a World Gold Council survey. Gold retains its position as a reliable protective asset, helping to minimise risks during persistent economic and geopolitical instability. According to fresh 2025 statistics published by the World Gold Council on Tuesday, approximately 95 per cent of reserve managers anticipate continued growth in central banks' gold reserves over the next 12 months. This figure marks the highest level since monitoring began in 2019, showing a substantial increase of 17 per cent compared to 2024 results. The 2025 Central Banks Gold Reserves (CBGR) survey, which includes responses from 73 central banks worldwide, reveals that approximately 43 per cent of these institutions intend to expand their gold holdings within the coming year. Also Read | Gold price rise impact: Value of RBI's gold surges 57% to Rs 4.32 lakh crore Reserve managers maintain their positive stance towards gold, despite its current peak prices and a consistent 15-year trend of central bank acquisitions. The primary reasons for maintaining gold reserves have evolved to focus on its value preservation capabilities (80 per cent), portfolio diversification benefits (81 per cent), and reliable performance during challenging periods (85 per cent). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Wrinkle Cream Keeps Selling Out At Costco (Find Out Why) The Skincare Magazine Undo Central banks within emerging markets and developing economies (EMDE) continue to express optimism regarding gold's future significance in their reserve portfolios. A significant proportion of EMDE respondents (48 per cent) anticipated an increase in their gold reserves within the next 12 months, whilst only 21 per cent of advanced economy respondents shared this outlook, showing an increase from the previous year. For EMDEs, inflation (84 per cent) and geopolitical circumstances (81 per cent) were primary considerations for holding gold, alongside interest rates. In contrast, advanced economies showed lower concern, with 67 per cent and 60 per cent respectively prioritising these factors. Also Read | India has the world's 7th highest gold reserves! Why is RBI buying gold and how does it help the Indian economy? There is a noticeable trend towards domestic gold storage, with 59 per cent of respondents now keeping gold locally, an increase from 41 per cent in 2024. The majority of participants (73 per cent) anticipate a reduction in US dollar holdings within global reserves over the next five years. The survey indicates that alternative currencies, including the euro and renminbi, alongside gold, are expected to gain prominence in global reserves during this 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," added Shaokai Fan. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economy ME
10 hours ago
- Business
- Economy ME
Central banks expect to increase gold holdings, decrease U.S. dollar holdings over next five years: WGC
Central banks have accumulated over 1,000 tons of gold in each of the last three years, up significantly from the 400-500 tons average over the preceding decade. This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers and investors alike The World Gold Council 's 2025 Central Bank Gold Reserves (CBGR) survey highlighted the continued importance of gold reserve management in these challenging times. Similar to findings from previous surveys, central banks continue to hold favorable expectations on gold. Respondents overwhelmingly believe that global central bank gold reserves will increase over the next 12 months. U.S. dollar holdings to decline as share of other currencies rises This year, a record 43 percent of respondents believe that their own gold reserves will also increase over the same period. Interestingly, none of our respondents anticipate a decline in their gold reserves. Gold's performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year. In addition, gold's unique characteristics and role as a strategic asset continue to be valued by central banks: its performance in times of crisis, ability to act as a store of value, and its role as an effective diversifier continue to be cited as key reasons for an allocation to gold. The survey also revealed that the majority of respondents see moderate or significantly lower U.S. dollar holdings within global reserves over the next five years. Respondents also believe that the share of other currencies, such as the euro and renminbi, as well as gold, will increase over the same period. Read: FDI flows to developing economies fall to lowest level since 2005, says World Bank Bank of England remains most popular vaulting location In addition, the World Gold Council noted that the Bank of England remains the most popular vaulting location for gold reserves amongst respondents. A significantly higher percentage of respondents reported some domestic storage of gold reserves this year than they did last year, while just 7 percent indicated that they plan to increase domestic storage of gold reserves over the next 12 months. Ongoing economic and geopolitical uncertainty continues to weigh on reserve managers, as this year's findings highlight. Concerns over the inflation outlook and potential trade conflicts, particularly amongst EMDE banks, show that diversification and risk mitigation continue to be key drivers of strategic reserve management decisions. While there are divergences between advanced economies and EMDE central banks on some aspects, they share a common confidence in gold's role as a reliable store of wealth and a key component of long-term reserve management strategies. As the world becomes increasingly volatile and unpredictable, gold's safety, liquidity and return characteristics – the three key investment objectives for central banks – have risen in importance. The trends uncovered suggest that central banks continue to recognize the benefits of an allocation to gold, and indicate that their demand for gold will likely remain healthy for the foreseeable future.
Time of India
11 hours ago
- Business
- Time of India
Central banks set to boost gold holdings amid economic and geopolitical uncertainty: World Gold Council
Central banks anticipate an increase in official sector gold holdings amid a backdrop of geopolitical and economic uncertainty, according to a report released by the World Gold Council today. 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 the new 2025 data released by WGC. 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 gold reserves within the next year. Reserve managers' favourable view of gold persists even in the face of record-high gold prices 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like After Losing Weight Kevin James Looks Like A Model 33 Bridges Undo 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 gold reserves would increase in the next 12 months, compared to 3 out of 14 (21%) of advanced economy respondents, more than last year. Live Events 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 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.'
