Nearly Half of Central Banks Plan to Add Gold as Dollar Confidence Slips

A record 45 percent of central banks surveyed by the World Gold Council expect to increase their own gold holdings over the coming year, citing geopolitical uncertainty and declining confidence in the United States dollar. As reported by TASS, an overwhelming 89 percent of respondents expect total global foreign exchange and gold reserves to rise.

Respondents named gold's performance during crises, portfolio diversification and protection against inflation as their main reasons for holding it, according to the World Gold Council. The survey also recorded a notable shift in where reserves are kept. The Bank of England remained the most popular storage location, while confidence in the Swiss National Bank as a custodian fell to 6 percent from 12 percent a year earlier.

Gold traded near 4,358 dollars an ounce on June 16, well off its January peak but still elevated by historical standards. Bitcoin, the other asset that some investors treat as hard money, held near 66,000 dollars after recovering from a sharp early-month decline.

The persistence of official gold buying is consistent with a slow move away from dollar-centric reserves. When monetary authorities expand credit and run large deficits, gold's appeal as a reserve asset that no government can print tends to strengthen, and a steady accumulation by central banks is a structural signal rather than a short-term trade.