Reuters: Central Banks Favor Gold Over Dollar for Reserves, WGC Survey
Article by Pratima Desai & Gareth Jones in Reuters
Central banks around the world expect their gold holdings as a proportion of their reserves to increase over the next five years while expecting their dollar reserves to be lower, a survey by the World Gold Council (WGC) showed.
Gold demand from central banks has risen significantly over the past three years despite its price rally to consecutive records. It hit an all-time high of $3,500.05 an ounce in April, up 95% since February 2022 when Russia invaded Ukraine.
73 central banks responded to WGC's survey, carried out between February 25 and May 20, and 76% of these expect their gold holdings to be higher in five years compared with 69% last year.
Nearly three-quarters of respondents expected central banks' dollar-denominated reserves to be lower in five years compared with 62% last year.
"Gold’s performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year," WGC said in a release.
Central banks have accumulated more than .....