Central Banks Stockpile Record Amounts of Gold Amid Global Uncertainty

Gold has long been a safe-haven asset and store of value throughout history. Its popularity as an investment during turbulent times is due in part to its ability to hedge against inflation and currency depreciation.

Central banks are significant holders of gold, with many countries increasing their reserves in recent years. 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.

The price of gold is inversely correlated with the US Dollar and US Treasuries, meaning that when the dollar depreciates, gold tends to rise. This correlation also applies to risk assets, as a rally in the stock market can weaken the price of gold.