Central Banks' Quiet Gold Hoard Challenges US Dollar Dominance

The gold market is experiencing a structural shift, driven by central banks' persistent accumulation of reserves. According to Goldman Sachs Research, this trend will endure beyond the current cycle and may even challenge the US dollar's reserve-currency dominance.

Central banks added a net 288.9 tonnes to their reserves in the second quarter, a 62 percent jump year-on-year and the strongest Q2 figure ever recorded. Poland led the pack with 51 tonnes, while China purchased 33 tonnes, marking its largest quarterly acquisition since late 2023.

The World Gold Council is also working to formalize supply chains through memoranda of understanding with companies like Dynacor and OCIM Metals & Mining. This aims to improve transparency and accountability in the gold industry.