Central banks could increase gold reserves further as shine of US dollar dims: analysts

CENTRAL banks are expected to continue to add to their gold reserves over the next year, analysts said, as the US dollar loses its shine in the longer term for investors seeking a safe haven from ongoing macroeconomic uncertainties.

The 2024 Central Banks Gold Reserves survey by the World Gold Council (WGC) noted that central banks are showing a more favourable view of gold’s prospects as a reserve asset.

Some 29 per cent of the central banks surveyed said they intend to increase their gold reserves in the next 12 months, and 81 per cent of respondents said they expect global central bank gold holdings to increase in the period. These responses represent the highest level of positivity towards gold since 2019, WGC said.