Central Banks' Gold Accumulation Raises Questions Amid Uncertain Economic Conditions

Central banks worldwide are increasing their gold reserves, raising questions about when this trend might end. According to PANews, while the U.S. Federal Reserve aims to maintain stable interest rates, the Trump administration is advocating for rate cuts, contributing to global uncertainty in interest rates and inflation. The World Gold Council reports that central banks currently hold foreign exchange reserves totaling approximately $13 trillion, with official gold holdings amounting to 36,000 tons. At the current gold price of $5,500 per ounce, the value of these gold reserves is estimated at $6.37 trillion. Research from Deutsche Bank suggests that if gold prices reach $5,790 per ounce, central banks' gold reserves will surpass their dollar reserves, potentially making gold the primary global reserve asset.