Gold Reserves: According to the World Gold Council report, 81% of central banks have announced plans to continuously increase their gold reserves.
Gold Price: Gold prices are making it difficult for the common man, with the likelihood of further increases in the coming days. The reason for this is that central banks worldwide are scrambling for gold. Gold has the power to protect the entire nation by countering severe economic crises beyond borders. Hence, the demand for gold is increasing day by day.
In 2023, central banks globally, including the Reserve Bank of India (RBI), purchased 1,037 tonnes of gold.
This is the second-largest purchase after the record 1,082 tonnes bought in 2022. Increasing geopolitical tensions and economic instability in some parts of the world are driving up the demand for the yellow metal.
According to the World Gold Council report, various central banks are expected to purchase more gold in the next 12 months. There is already a significant gap between gold supply and demand in the global market.
The interest of central banks is continuously increasing this demand, but the supply is not rising at the same pace. As a result, gold prices are expected to rise further in the coming days.
Central Bank Gold Reserve Survey 2024
The World Gold Council recently released its “Central Bank Gold Reserve Survey 2024” report, conducted between February 19 and April 30 this year. In this survey, 69 central banks participated and shared their plans.
Among them, 29% of central banks indicated that they would buy more gold in the next 12 months to increase their gold reserves. The World Gold Council started conducting such surveys in 2018.
This is the second time that such a large number of central banks have responded about increasing their gold reserves since the survey began.
However, central banks are not buying large amounts of gold all at once. They are making purchases strategically, considering the quantity of gold produced in their respective countries, economic concerns, rising inflation, and overall global developments.
They are implementing a well-planned strategy to secure gold from the global market.
Central Banks Inclined Towards Increasing Gold Reserves
In the survey, 81% of the 69 participating central banks stated their intention to increase gold reserves, while 19% said there would be no change in their reserves.
About 71% of central banks explained their gold hoarding in 2023.
Additionally, 69% of central banks indicated that they would increase the proportion of gold in their total foreign exchange reserves over the next five years.
In terms of gold purchases, the Reserve Bank of India (RBI) is among the top five central banks in the world.
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