Central banks sustain multi-year gold purchases amid dollar geopolitics

Heraeus Precious Metals reports that central banks have been buying gold for five consecutive years, purchasing more than 1,000 tonnes in 2023 – the highest level since the 1960s. The buying spree is driven by concerns over the dollar’s use as a geopolitical tool, prompting banks in China, Poland, Turkey, India and several Middle‑Eastern nations to seek a universally recognized, physically limited asset that cannot be seized or devalued by any government.

At the same time, the price of gold surged to around $4,204 per ounce, up 1.19% in a single day, reflecting broader investor demand for a safe‑haven metal amid economic uncertainty. The rally affected local investors, notably in the Santa Cruz region, where higher gold prices improve profitability for miners and influence community economics.