Washington, D.C. (Agencies): Global central banks are accelerating their shift toward gold, diversifying their reserves away from the US dollar. The share of gold in global reserves has risen significantly, increasing from 12.9% in late 2021 to 18.4% by the end of 2024. This move highlights a broader strategy among nations to mitigate risks associated with currency fluctuations and economic uncertainties.
In 2024 alone, central banks added a remarkable 1,044.6 metric tons of gold to their reserves, marking the third consecutive year that purchases have exceeded 1,000 metric tons. The trend is expected to continue, with a 2024 World Gold Council survey indicating that 81% of central bankers anticipate further increases in global gold reserves over the next 12 months.
Amid this surge in demand, gold prices reached an all-time high of $3,057.21 per ounce on March 20, 2025. Analysts attribute this increase to signals from the U.S. Federal Reserve indicating potential interest rate cuts in 2025, coupled with ongoing geopolitical and economic tensions.
The world’s top gold-holding central banks include:
- United States – 8,133.46 metric tons
- Germany – 3,351.53 metric tons
- Italy – 2,451.84 metric tons
- France – 2,437 metric tons
- Russia – 2,332.74 metric tons
- China – 2,279.56 metric tons
- Switzerland – 1,039.94 metric tons
- India – 876.18 metric tons
- Japan – 845.97 metric tons
- Netherlands – 612.45 metric tons
This increasing reliance on gold underscores its growing importance as a hedge against economic instability, reinforcing its status as a safe-haven asset in uncertain times.