TechFlow News, June 16: The World Gold Council (WGC) stated on Tuesday that 45% of central banks surveyed by the WGC expect to increase their gold holdings over the next 12 months—an increase of two percentage points from a year earlier. In its annual survey conducted between February 5 and May 19, 54% of the 74 central banks surveyed indicated they would maintain their current gold holdings, while 1% anticipated a decline in gold holdings. Most responses were received after the outbreak of the Middle East conflict in late February, which triggered a rise in oil prices and led to a drop in gold prices. According to the WGC’s Global Head of Central Banks, central banks remain enthusiastic about gold, and recent declines in gold prices have not altered their stance. Additionally, the WGC reported that 93% of respondents currently hold gold—up from 81% a year earlier.
Among the many reasons cited for holding gold, as many as 90% of respondents noted gold’s strong performance during crises. Other key reasons include long-term value preservation and portfolio diversification. Respondents from emerging markets and developing economies (85%) place greater emphasis on gold’s role as a hedge against geopolitical risks. As some central banks continue shifting their gold reserves, 9% of respondents reported increasing their domestic gold reserves over the past 12 months—up from 5% last year—while 10% said they had diversified the locations of their overseas gold reserves, up from 2% last year. Over the next 12 months, 7% of central banks plan to increase domestic storage, and 9% plan to diversify the locations of their overseas storage. (Jin10)
