World Gold Council Survey: More Central Banks Indicate Plans to Increase Gold Reserves

According to Odaily Planet Daily, the World Gold Council (WGC) said on Tuesday that 45% of the central banks surveyed expect to increase their gold holdings in the next 12 months, up 2 percentage points from a year ago. In the WGC's annual survey conducted from February 5 to May 19, 54% of the 74 central banks surveyed said their gold holdings would remain unchanged, while 1% expected them to decrease. Most responses were received after the outbreak of conflict in the Middle East in late February, which triggered a rise in oil prices and a fall in gold prices. The WGC's global central bank director said that central banks remain enthusiastic about gold, and the recent drop in gold prices has not changed their minds. Furthermore, the WGC said that 93% of respondents already hold gold, up from 81% a year ago. Among the many reasons for holding gold, a high 90% of respondents said gold performed well during crises. Other major reasons included long-term value storage and portfolio diversification. Respondents from emerging markets and developing economies (85%) valued gold more as a hedge against geopolitical risks. As some central banks continue to move their gold reserves, 9% of respondents said they increased their domestic gold reserves in the past 12 months, up from 5% last year; 10% said they have diversified their overseas gold reserve locations, up from 2% last year. In the next 12 months, 7% of central banks plan to increase domestic storage, and 9% plan to diversify their overseas storage locations. (Jinshi)