Central Banks' Gold Rush Sparks Price Target Speculation

The accumulation of gold by central banks has increased significantly over the past four years, averaging around 1,000 tonnes per year. This trend is occurring against a backdrop of geopolitical and economic uncertainty.

According to the World Gold Council survey, the top reasons reserve managers own gold are its performance during times of crisis, portfolio diversification, inflation hedging, and geopolitical risk hedging.

The global central banks have been net buyers of gold since the Global Financial Crisis, with China being the largest buyer. The World Gold Council estimates that roughly two-thirds of recent central bank gold buying has been 'unreported', or inferred rather than disclosed.