6/17/2025–|Last update: 14:54 (Mecca time)
Central banks expect that more gold is accumulated this year while reducing their US dollar possessions during the next five years, according to a survey of international monetary bodies.
According to the British Financial Times, geopolitical fears, sanctions and fears regarding the state of the dollar prompted global central banks to carry out standard biases for alloys, and gold recently exceeded the euro to become the second largest reserve world, after the US dollar.
Gold prices have increased by 30% since January, and have doubled over the past two years, and paid all global uncertainty and market fluctuations to investors’ demand for alloys.
Gold reached its highest level at $ 3500.05 an ounce in April, an increase of 95% since February 2022 when the Russian -Ukrainian war began, according to Reuters.
Central bank expectations
95% of the participants in a survey conducted by the World Gold Council – which is a record – expected that global central banks’ possessions of gold will increase during the next 12 months, which is the highest level since the start of the annual survey in 2018.
At the same time, 3 quarters of the participants expect the decrease in central banks from the dollar during the next five years, and more than 70 central banks responded to the poll’s opinion poll.
It is noteworthy that foreign exchange reserves in the world fell to $ 12.36 trillion by the end of last year, and the share of the dollar’s possession of the total reserves reached 57.80% of the total, according to the latest data issued by the International Monetary Fund.
The World Gold Council stated that the central banks collected more than a thousand metric tons of gold every three years, adding that this is a significant increase from an average of 400-500 tons in the previous decade.
“The morale is very strong, and there is certainly more confidence in the central banks that all central banks will buy, and that their central bank may also buy,” said Chuhakai Van, of the World Gold Council.
However, in reference to how geopolitical tensions affect the gold market, some central banks plan to store more alloys locally, unlike London and New York, the largest warehouses of this type in the world.
Fears regarding the ability of central banks contributed to reaching gold stored abroad in the event of a crisis, or in the event of penalties, in a small but important direction to restore gold to the homeland, while increasing the storage of gold locally.
And last year, India returned more than 100 tons of gold from the Bank of England, while the Nigerian Central Bank also returned some of its possessions.
Local storage
About 7% of the participants have reported that they are planning to increase local storage, which is the highest level since the Kofid-19 pandem what Her stored gold in the United States was safe from political intervention.
The Federal Reserve (US Central) in New York shall manage the gold stored in the United States on behalf of foreign central banks.
In February, US President Donald Trump publicly asked whether gold was lost from the Fort Nox base, which includes most of the American gold reserves.
In the survey of the World Gold Council, the central banks indicated that the performance of gold during “crisis times”, the lack of risk of failure to pay, and its role as a tool for inflation, was the main reasons for maintaining alloys.
The purchase of the central banks of gold in 2022 accelerated after the outbreak of the Russian -Ukrainian war, and the subsequent American efforts to get Moscow out of the international payment system.
This prompted many central banks in emerging markets to start diversifying their investments faster away from the dollar.
“The recent developments in the market related to customs duties raised questions about the situation of the US dollar as a safe haven, but it has strengthened the gold situation … reserve managers look at gold as a way to hedge from inflation in this difficult period that witnesses geopolitical and commercial conflicts.”
Gold also has downsides as a precaution, including the costs of storing it and the difficulty of transporting it.
