Central banks surge in gold purchases amid geopolitical, dollar concerns

Central banks across the globe have markedly increased their gold reserves in 2022 and 2023, with annual demand rising about 18% to the highest level since 2011. Major buyers such as China, India, Russia and Turkey expanded holdings to diversify away from the U.S. dollar, hedge against inflation and mitigate geopolitical uncertainty. The World Gold Council reports that emerging economies are stockpiling gold as a long‑term store of value, with some nations using the metal to stabilise their currencies and bolster confidence in foreign‑exchange markets.

Analysts note that the trend could push gold prices higher and shift investment flows away from stocks and bonds. As Katie Lourey of Gold Stackers put it, “Many institutional buyers are looking at gold not as a short‑term trade, but as a long‑term reserve asset that can sit outside traditional currency systems.”