Central banks turn to gold as global risks increase
Central banks from countries like Mexico, Mongolia, and the Czech Republic are increasing their gold reserves, signaling a response to growing global uncertainties.
During the recent London Bullion Market Association conference in Miami, officials emphasised the importance of gold amid shifting economic conditions and geopolitical tensions, reflecting a broader trend of seeking safe assets.
Joaquín Tapia, who oversees international reserves at Banco de México, pointed out that current factors such as lower interest rates, global tensions, and the upcoming U.S. election could lead to an increased share of gold in their holdings.
“Given the context that we are facing right now... maybe the share of gold in our portfolios could be increasing as well,” Tapia said.
Enkhjin Atarbaatar from the Bank of Mongolia shared a similar perspective, stating that the country’s reserves are set to grow, with gold playing a more significant role.
“I also expect that the share of gold in our reserves will likely increase in the future,” he commented.
Marek Sestak, a representative from the Czech National Bank, agreed, highlighting gold’s appeal as a stable asset during uncertain times.
These insights come as central banks worldwide have been buying more gold, contributing to a 25% increase in its price this year.
This trend has led gold to outperform both U.S. stocks and bonds, as central banks seek stability in a volatile global environment.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Shiba Inu Dev Responds to Shibarium’s Integration of Chainlink’s CCIP for Seamless Connectivity
AAVE breaks above $200
Vancouver mayor proposes Bitcoin adoption as reserve asset
Ether ETFs gain $224.9M as Ethereum price rallies to $3,590