Central banks remain positive on gold
Central banks continue to be positive on gold and around 21 per cent of the central banks around the globe intend to increase their gold reserves over the next 12 months, according to a survey jointly undertaken by the World Gold Council and YouGov.
Gold trades lower in Hyderabad, Bangalore, Kerala, Visakhapatnam on 11 June 2021
New Delhi: Central banks continue to be positive on gold and around 21 per cent of the central banks around the globe intend to increase their gold reserves over the next 12 months, according to a survey jointly undertaken by the World Gold Council and YouGov.
The '2021 Central Bank Gold Reserves (CBGR)' survey also noted that central banks are also increasingly valuing gold's performance during periods of crisis as this attribute now tops their rationale for holding gold.
"These results come amid ongoing uncertainty stemming from the Covid-19 pandemic, a situation which has added significant complexity to central bank reserve management," said the report.
It noted that this year's CBGR survey indicates continuing central bank interest in gold. Potentially driving this interest is a growing recognition of gold's financial characteristics, particularly during periods of crisis, said the report.
"At the same time, ongoing concerns about global market volatility and the path of the post-pandemic economic recovery continue to inform central banks' views of gold. These same factors may also be clouding respondents' opinions on the overall direction of central bank gold holdings despite having more certainty on their own plans for gold," it added.
