Central Banks Load Up on Gold in Record Year

Gold has long been a safe-haven asset, prized for its store of value and medium of exchange. Central banks, in particular, have been increasing their gold reserves as a way to support their currencies during turbulent times.

In 2022, central banks added 1,136 tonnes of gold worth around $70 billion to their reserves, the highest yearly purchase on record according to data from the World Gold Council. This trend is being driven by emerging economies such as China, India, and Turkey, which are rapidly expanding their gold holdings.

The price of gold can be influenced by a range of factors, including geopolitical instability, interest rates, and the value of the US dollar. A weak dollar tends to push up the price of gold, while a strong dollar has the opposite effect.