World Gold Council: Driven by Geopolitical Risks, More Central Banks Will Increase Gold Holdings

BlockBeats News, March 24th, Shaokai Fan, Global Central Bank Director of the World Gold Council, stated on Tuesday that gold, as a hedge against de-dollarization and geopolitical risk, is expected to prompt central banks that were previously absent from the market to buy the precious metal this year. He said that in recent months, central banks of countries such as Guatemala, Indonesia, and Malaysia have started to purchase gold, with these central banks either re-entering the market after a long hiatus or making their first-ever gold purchases. "In the past few months, some new central banks, either long inactive or absent from the gold market, are entering the gold market. I believe this trend may continue into 2026."

He added that some central banks are also buying gold from domestic small-scale producers to support the local industry and prevent these gold reserves from flowing to "non-regular participants." He also stated that during a gold sell-off in October last year, central banks took the opportunity to increase their holdings, but it is still too early to judge whether a similar situation has occurred in this month's decline. (FX678)