The annual survey of central banks conducted by the World Gold Council (WGC) from February to April found that despite high gold prices, more and more central banks plan to increase their gold reserves in the next 12 months due to ongoing macroeconomic and political uncertainty.
Demand for gold from central banks has increased over the past two years as some countries diversify their foreign exchange reserves. Against this background, prices for precious metals increased significantly from March to May 2024, and reached a record high on May 20.
The survey, which included a total of 69 responses, showed that 29% of central banks expect to increase their own gold reserves in the next 12 months, compared with 24% in 2023. The latest value was the highest since the beginning of this survey (since 2018). The WGC also stated that 81% of respondents expect an increase in the gold reserves of the world's central banks over the next 12 months, compared with 71% a year ago. The WGC added that the main reasons for the increase in gold reserves now are "long-term store of value or inflation hedge," "performance during times of crisis" and "effective portfolio diversifier."