look news india
Many more nationalized banks of the world are planning to increase their gold reserves in the next one year. Not only this, some of these banks also want their other counterparts to increase their gold reserves.
In its annual survey, the World Gold Council (WGC) said that despite gold prices being at historic highs, central banks have chosen to further increase gold reserves as a precautionary measure due to ongoing macroeconomic and geopolitical uncertainty. The demand for gold from various central banks has increased in the last two years due to diversification of foreign exchange reserves. Despite gold prices reaching an all-time high, the enthusiasm of central banks to buy gold remains intact.
WGC conducted the survey between February-April. 69 central banks participated in it. Out of these, 29 percent of the central banks expect that their gold reserves will increase in the next one year.
Diversification of foreign exchange reserves
There has been an increase in the demand for gold from various central banks over the last two years due to diversification of their foreign exchange reserves, gold prices rose in March-May, the increasing demand for gold from banks was also a factor behind this rise, the price reached a record high on May 20 and the price per ounce was US$2,449.89.
