Central Banks Pour Billions into Gold Reserves Amid Turbulent Times

Gold has long been a store of value and medium of exchange throughout human history. In addition to its uses in jewelry, it's now widely regarded as a safe-haven asset that's considered a good investment during turbulent times.

The precious metal is also seen as a hedge against inflation and currency depreciation because it doesn't rely on any specific issuer or government.

Central banks are the largest holders of gold, with some adding significant amounts to their reserves in recent years. In 2022, central banks added 1,136 tonnes of gold worth around $70 billion to their reserves, according to data from the World Gold Council. This is the highest yearly purchase since records began.

The price of gold can move due to various factors, including geopolitical instability and changes in interest rates. A strong US Dollar tends to keep the price of gold under control, while a weaker dollar can push prices up.