World Gold Council: Driven by geopolitical risks, more central banks will increase their gold holdings
Shaokai Fan, the global central bank director of the World Gold Council, stated on Tuesday that gold, as a tool for hedging against de-dollarization and geopolitical risks, is expected to encourage central banks that have previously been absent from the market to buy this precious metal this year.
He noted that in recent months, central banks from countries such as Guatemala, Indonesia, and Malaysia have begun purchasing gold. These central banks may be returning to the market after a long hiatus or making their first purchases of gold. "In recent months, some new central banks, or those that have been inactive or absent from the gold market for a long time, are entering the gold market. I believe this trend may continue into 2026." He added that some central banks are also purchasing gold from small domestic producers to support local industries and prevent this gold from flowing to "informal participants."
He also mentioned that during a round of gold sell-offs last October, central banks took the opportunity to increase their holdings, but it is still too early to determine whether a similar situation will occur in this month's decline.
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