Central Banks Fuel Gold Demand Amid Rising US Debt and Currency Risks

Central banks are expected to remain key buyers of gold, with 45% adding to reserves year-on-year as of Q2CY26, up from 32% in Q4CY21.

The US federal debt has crossed $40 trillion and could reach 140-145% of GDP over the next decade, strengthening gold's appeal as a hedge against fiscal and currency risks.

China's gold reserves account for just 8.02% of its FX reserves, while the PBoC added 20.2 tonnes in August, leaving scope for further reserve diversification.