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Central banks’ gold appetite grows despite record high prices

The Saigon Times

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HCMC – Central banks worldwide are increasingly bullish on gold, with many planning to boost their holdings despite record high prices and recent surges in demand, according to a World Gold Council (WGC) survey released on June 18.

The WGC’s 2024 Central Bank Gold Reserves (CBGR) survey, which polled 70 central banks worldwide, revealed that nearly 30% of them intend to increase their gold reserves this year.

The strong demand underscores gold’s appeal as a safe haven asset amid global economic and political uncertainties.

According to the report, 88% of central banks cited gold’s long-term value, 82% pointed to its resilience during crises, and 76% emphasized its role as an effective portfolio diversifier as the primary reasons for holding the metal.

Central banks in emerging and developed economies are increasingly optimistic about gold’s future share in reserve portfolios. More than half of central banks in developed economies expect gold to account for a larger proportion of reserves five years from now, up from 38% in 2023.

“Extraordinary market pressure, unprecedented economic uncertainty, and political upheavals around the world have kept gold front of mind for central banks,” said Shaokai Fan, global head of Central Banks & head of Asia-Pacific at WGC.

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