Weekly outlook
·
6 min read
Why central banks keep buying gold, and what it means for small savers
Central banks added more than 800 tonnes in the past year. We look at how that demand shapes the price you pay per gram.
Hana Prasetyo, Head of Research
Central banks bought more than 800 tonnes of gold over the past twelve months. That is close to a record pace, and it has kept a steady floor under the price even when interest rates stayed high.
Why they keep buying
Most of the buying comes from emerging market banks that want to hold fewer dollars. Gold has no issuer and no counterparty, so it works as a neutral reserve when trade and politics get noisy.
What it means for you
Strong official demand tends to soften price drops. For a small saver, that is an argument for buying regularly instead of waiting for a perfect dip. A fixed weekly amount smooths out the swings without any guesswork.