Central Banks Boost Gold Reserves Amid Turbulent Times

Gold has played a significant role in human history as it's been used as a store of value and medium of exchange. In addition to its shine and jewelry use, gold is considered a safe-haven asset during turbulent times.

Central banks are the largest gold holders, purchasing gold to improve their economy's perceived strength and currency support. The World Gold Council reported that central banks added 1,136 tonnes of gold worth around $70 billion to their reserves in 2022, the highest yearly purchase on record.

Gold has an inverse correlation with the US Dollar and US Treasuries. When the dollar depreciates, gold tends to rise, allowing investors and central banks to diversify assets during turbulent times. The price of gold can move due to various factors, including geopolitical instability or fears of a deep recession.