Gold prices have been hitting successive new highs this year, a key driver of which is central banks around the world. World Gold Council statistics show that central banks have seen two years of over 1,000 metric tons of buying in 2022 and 2023.
“It is a trend of diversifying away from dollar and adding other assets into their reserves”, said Ali Farid Khwaja, Chairman of KTrade Securities.
Amid sustained geopolitical tensions, an alternative system is being sought after to avert risks. “It correlates with the decline in the use of USD and Euro as reserve currencies in the basket of global central banks as well as currencies used in trade”, he said.
