Central banks expect to keep buying gold in large quantities.

June 26 (King World News) – Gerald Celente:  Central banks in 13 percent of the world’s advanced economies plan to add to their gold reserves over the next 12 months, compared to 8 percent a year ago, according to a survey by the World Gold Council.

Roughly 60 percent of rich countries’ central banks see gold claiming a larger portion of global asset reserves over the next five years, the survey found. A year earlier, 38 percent held that view.

Bank officials cite the likelihood that gold will increase in value and also its ability to hold value in a crisis.

Central banks in emerging markets have led the buying trend; they have been increasing their gold stores since the Great Recession in 2008, the Financial Times said. About 40 percent plan to expand their holdings further.

Fifty-six percent of central banks see the dollar’s share of world reserves shrinking through the rest of this decade, including 64 percent of emerging nations’ national banks.

The dollar accounted for about 70 percent of global foreign exchange reserves in 2000 but has decreased to 55 percent in 2023, the FT noted…

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Central banks have been diversifying their reserves away from the dollar after the U.S. used the international financial system to punish Russia for attacking Ukraine and gold has been a chief beneficiary of the shift in allocations. 

After the West sanctioned Russia’s economy, non-Western nations made a dash for bullion.

Gold’s price also has rocketed up 42 percent since the beginning of the Israeli-Hamas war last October.

“More advanced countries are saying that gold is going to occupy more of global reserves and the dollar will be less,” Shaokai Fan, the gold council’s central bank analyst, said in comments quoted by the Financial Times.

“It wasn’t the emerging market countries evaluating these factors less but advanced markets catching up to how emerging markets feel about gold,” he added.

As Trends Journal subscribers well know, we called the bottom of gold in September of 2023 and one of our Top Trends of 2024 was “GOLDEN DAYS: A GOLDEN YEAR FOR GOLD” (2 Jan 2024)

Also pushing up gold prices now and in the future are these factors: The U.S. Federal Reserve lowering interest rates. The further interest rates go down, the deeper the dollar will fall and the higher gold prices will rise; the greater the Ukraine and Israel war escalate the higher oil prices will rise and should Brent crude hit around $130 per barrel it will crash equity markets and global economies, thus sharply pushing up gold prices as the world’s #1 safe-haven asset.

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