Central banks intend to buy more Gold – Commerzbank
Gold remains in high demand among central banks. According to a survey published a few days ago by the Official Monetary and Financial Institutions Forum (OMFIF), a third of the 75 central banks surveyed plan to buy Gold in the next 1-2 years, Commerzbank's commodity analyst Carsten Fritsch notes.
USD loses global favour
"Over the next ten years, 40% of central banks intend to do so. The US dollar, on the other hand, is losing its appeal. It fell from first place on the popularity scale to seventh place within a year. 70% of central banks stated that the political environment in the US would prevent them from investing in US dollars. In addition to Gold, the euro and the Chinese renminbi are also benefiting from this."
"Nevertheless, the US dollar is still expected to remain the leading reserve currency in ten years' time with an average expected share of 52%. The share of the euro is then expected to be 22%. A few weeks ago, an ECB study revealed that the euro had fallen behind Gold to third place among the most important reserve currencies last year."
"A survey by the World Gold Council also recently showed that central banks intend to buy more Gold over the next 12 months. Central bank Gold purchases therefore remain an important support factor for the Gold price."
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FXStreet Insights Team
FXStreet
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