Rising consumer prices and falling currency values in many markets have triggered a rush to gold as a store of value, while the gold price has held up well even as global inflation has risen. The rush to gold by central banks is also driven by the desire of countries to weaken their dependence on the US dollar as a reserve currency after Washington used the greenback dollar as a weapon in its sanctions against Russia.
- Central banks bought 800 tonnes of gold in the last nine months, 14% more than in 2022.
- China bought 181 tonnes of gold in the last nine months, currently China’s gold reserves stand at 4% of their total reserves.
Read more in this Financial Times article