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Central bank Gold demand will be strong for the foreseeable future – TDS

Last year, central banks purchased a near-record 1,037t of Gold and a record 1,082 tonnes in 2022. After record central bank buying in 2022 and 2023, economists at TD Securities expect continued strong demand from central banks in the years to come. 

Central banks reigniting Gold bull run

Considering that about a quarter of central banks intend to increase their holding this year, we are confident that central bank Gold demand will be strong for the foreseeable future. Central banks’ view that the future role of the US Dollar will be diminished in the years to come will be a big driver of Gold demand in the future, as has been outlined in recent surveys which show an increase in this attitude from earlier surveys.

A record pace of central bank physical gold purchases and renewed investor interest to protect against purchasing power erosion, default risks as US debt grows to alarmingly high levels and sanctions risks associated with geopolitical tensions in the Middle East and Eastern Europe, could all be factors that not only provide price support as they did last year, but augment any spec-driven rally.

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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