Central Banks Favour Gold over Dollar for Reserves, WGC Survey
- The World Gold Council released a June 17, 2025 survey showing 95% of 73 central banks plan to increase gold reserves over the next year.
- The survey reflects growing concern about inflation, interest rates, geopolitical tensions, and declining confidence in the US dollar’s role as a global reserve.
- For the third consecutive year, central banks have added in excess of 1,000 tonnes of gold to their reserves, which now make up 20% of holdings, while the dollar’s proportion declines amid concerns over geopolitical tensions and inflation.
- Fan Shaokai of WGC emphasized that due to factors such as fluctuations in interest rates, rising inflation, and broader economic uncertainties, central banks view gold as a valuable tool to help reduce financial risk.
- The survey implies gold’s rising appeal as a reserve asset and anticipates sustained demand, suggesting gold will likely gain further as central banks diversify away from the US dollar.
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Central banks around the world are increasing their gold reserves at a record pace, as they anticipate a reduction in US dollar reserves in the coming years.According to the original World Gold Council report, 95% of the central banks surveyed expect global gold reserves to rise in the next 12 months. In addition, a record 43% plans to increase their own gold reserves during this period.In the last decade, central banks’ purchases of gold have e…
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