World Gold Council: More Central Banks to Increase Gold Holdings Driven by Geopolitical Risks

Odaily News The World Gold Council's global central bank head, Shaokai Fan, said on Tuesday that gold's role as a hedge against de-dollarization and geopolitical risks is expected to prompt central banks that have been absent from the market to buy the precious metal this year. He stated that in recent months, central banks in countries such as Guatemala, Indonesia, and Malaysia have begun purchasing gold, either returning to the market after a long hiatus or buying gold for the first time. "Some new central banks, or those that have been inactive or absent from the gold market for a long time, have been entering the gold market in the past few months. I believe this trend may continue into 2026." He added that some central banks are also buying gold from small-scale domestic producers to support local industries and prevent the gold from flowing to "informal participants." He also noted that during a round of gold selling in October last year, central banks took the opportunity to increase their holdings, but it is still too early to determine whether a similar situation occurred during this month's decline. (Jin10)