On April 23, according to the British Financial Times, central bank officials who manage trillions of foreign exchange reserves are buying gold aggressively. Geopolitical tensions, including the conflict between Russia and Ukraine, have forced them to reconsider their investment strategies.
An annual survey of 83 central banks found more than two-thirds of respondents believed their peers would increase their gold holdings in 2023.
Together, these central banks manage $7 trillion in foreign exchange assets. According to the World Gold Council, the amount of gold purchased by central banks will increase by 152% year-on-year to 1,136 tons in 2022.
The HSBC Reserve Management Trends Survey showed that a majority of reserve managers surveyed ranked geopolitical risk as one of their top concerns, second only to high inflation.