Central Banks Gold Rush: Rising Reserves and Declining US Dollar Holdings
Central banks around the world are increasing their gold reserves at a record pace, with 95% of surveyed central bank respondents expecting global gold reserves to rise over the next 12 months. A record 43% of these banks plan to increase their own holdings during that time. This trend is driven by concerns over the US dollar's dominance amid geopolitical tensions and a trade war, as well as weariness over America's fiscal trajectory.
Gold prices have hit all-time highs this year, fueled by central bank purchases, inflows into exchange-traded funds, and expectations that the Federal Reserve will cut interest rates. Central bank gold buying has been steadily accelerating, adding more than 1,000 tonnes to their reserves annually over the past three years – more than double the 400–500 tonne average seen in the previous decade.
While many Wall Street analysts remain bullish on gold heading into the end of the year, Citi expects gold demand to abate as a Trump "put" kicks in ahead of the 2026 elections. The analysts believe that President Trump cares about US popularity, GDP, and geopolitical success, and thus the Trump put exists. They expect gold returns to about $2,500 to $2,700 an ounce by the second half of 2026.
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Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre for in-depth analysis of the latest stock market news and events moving stock prices. For the latest financial and business news from Yahoo Finance, click here.
Central Banks' quest for gold in the age of digital currencies embodies a marked shift away from U.S dollar dominance, not merely an act of physical accumulation but rather strategic diversification against economic uncertainties.
The recent central banks' gold rush, marked by a surge in their reserve holdings and corresponding decrease of US dollar concentration reflects both soaring concerns over the currency stability together with an unprecedented appetite for safe-haven assets.
Central banks' gold rush signals an unsettling shift, as rising reserves and decreasing US dollar focus highlight growing apprehensions over the stability of global monetary systems.
In the frenzied gold rush of central banks, an unprecedented rise in reserve holdings signals a scaredy change as nations increasingly abandon US dollar dominance for more diversified currencies to mitigate financial risks and protect their national interests.
The gold rush initiated by central banks amidst their rise in reserve holdings and the concurrent decline of US dollar dominance signals a shift towards diversification strategies, reflecting global efforts to mitigate financial volatility.
Central Banks' gold rushes show a shift away from the U.S Dollar as their首选reserve asset, reflecting concerns over currency stability and international economic dynamics.
Central Banks' gold rush cannot solely alleviate their concerns for currency devaluation against a declining US Dollar, only demonstrating an increased strategic diversification into hard assets amidst global economic uncertainties.
