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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
Time of India
10 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.'
India Gazette
11 hours ago
- Business
- India Gazette
Central banks will continue to increase gold reserves amid geopolitical, economic uncertainty: WGC survey
New Delhi [India], June 17 (ANI): More than nine in ten (95 per cent) reserve managers indicated that they expect central banks to continue increasing their gold holdings in the next 12 months, according to new 2025 data released by the World Gold Council on Tuesday. This report comes on the backdrop of geopolitical and economic uncertainty. This is a record high since it was first tracked in the 2019 survey and represents a 17 per cent 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 per cent of central banks plan to add to their own 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. The top three current motivations for holding the asset have shifted to its long-term store of value (80 per cent), its role as an effective portfolio diversifier (81 per cent), and its performance in times of crisis (85 per cent). 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 per cent) EMDE respondents thought that their own gold reserves would increase in the next 12 months, compared to 3 out of 14 (21 per cent) of advanced economy respondents, more than last year. Although interest rate levels remained a key component of both groups' motivators for holding gold, inflation (84 per cent) and the geopolitical situation (81 per cent) were top of mind for EMDEs, while 67 per cent and 60 per cent of advanced economy respondents felt the same. Notably, more central banks are increasingly storing gold domestically: 59 per cent of the respondents said they have gold in domestic storage, up from 41 per cent in 2024. Additionally, most respondents (73 per cent) 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 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. The research was conducted by the World Gold Council in partnership with YouGov between 25 February and 20 May 2025, with 73 responses from central banks around the world. This is an increase in sample size from the previous year, which had 70 responses. (ANI)
