Central Banks Pour Record $70 Billion into Gold Reserves

Gold has been a store of value and medium of exchange throughout human history. Today, it's considered a safe-haven asset, widely sought after during turbulent times. Central banks are the largest holders of gold, and they're increasing their reserves to support their currencies.

In 2022, central banks added 1,136 tonnes of gold worth around $70 billion to their reserves, the highest yearly purchase on record. Emerging economies such as China, India, and Turkey are rapidly expanding their gold reserves.

Gold has an inverse correlation with the US Dollar (USD) and US Treasuries, which are major reserve and safe-haven assets. When the dollar depreciates, gold tends to rise, allowing investors and central banks to diversify their assets during challenging times.